WeedMD Inc. (
TSX-V:WMD)
(OTCQX:WDDMF) (FSE:4WE) (“
WeedMD”
or the “
Company”), a federally-licensed producer
and distributor of medical-grade cannabis, announced today that due
to delays caused by the COVID-19 global pandemic, it will accept
the exemption provided by the regulators* and file its financial
results for the fiscal year ended December 31, 2019 after market
close on May 27, 2020. Details here.
WeedMD also provided a corporate update which
included its company-wide response to the COVID-19 pandemic,
confirming that through a combination of initiatives, the Company
will be better positioned to mitigate the potential downside
related to the worldwide pandemic. These initiatives will include
the immediate reduction of executive and director compensation as
well as the streamlined operations plan which already factors in
12% of its staff recently placed on temporary leave.
“We are working through unprecedented times and
while our cultivation platform and production is fully ramped up,
in an effort to maintain prudent business practices during this
uncertain period, we recently made the difficult decision to
temporarily reduce our workforce,” said Angelo Tsebelis, CEO of
WeedMD. “In addition to the post-merger integration initiatives
already underway, we have further refined our operations in the
areas of oil extraction and production, and streamlined our client
services activities. We also repositioned our sales channels - with
medical and adult-use markets outpacing sales in the bulk wholesale
market. Our efforts have resulted in consistent sales growth and
normalized margins that align with our strategy and we look forward
to sharing more in May.”
Corporate Update
On December 20, 2019, WeedMD completed the
acquisition of Starseed Holdings Inc. (“Starseed”), a
medically-focused, federally-licensed cannabis company, combining
WeedMD’s industry leading cultivation, processing and development
with a vast direct-to-consumer medical sales channel. The merger
benefits will be better reflected in the Company’s first quarter
2020 financials.
Covid-19 Preparedness
The health and safety of WeedMD’s employees,
patients and customers continues to be its top priority. In
accordance with the guidance of Health Canada and all public health
agencies, commencing on March 10, 2020, management proactively
implemented COVID-19 safety measures. A practice that is ongoing
and includes the following health and safety measures taken:
- Increasing security screening procedures at all production
sites, including visitor bans;
- Mandating work-from-home policies for corporate offices in
Toronto and London;
- Implementing staggered & rotating employee shifts and
remote work for applicable staff;
- Relocating packaging to its newly-built 50,000 sq. foot
processing facility in Strathroy, ON;
- Installing additional hand-washing and hand-sanitizing
stations;
- Encouraging on site social distancing practices during break
and lunch times;
- Providing resources for compensation and benefits allotment for
staff on temporary leave;
- Upgrading telemedicine services via its North Star Wellness
program for client services; and
- Ensuring a healthy supply of personal protection equipment is
available on site, as well as donating over 23,000 masks and gloves
to Ontario’s healthcare community.
For more information on the proactive measures
taken, visit: WeedMD COVID-19 Safety Measures.
*Due primarily to the impact of the coronavirus
(COVID-19) pandemic, the Canadian Securities Administrators (CSA)
and the Toronto Stock Exchange (TSX) have granted issuers a blanket
45-day extension for filing financial statements, management’s
discussion and analysis (MD&A), annual information forms
(AIFs), technical reports and business acquisition reports (BARs).
BMO also consented to the extension, in accordance with the credit
agreement dated March 29, 2019. WeedMD confirms that all
insiders are subject to a blackout period during this
extension.
About WeedMD Inc.WeedMD Inc. is
the publicly-traded parent company of WeedMD RX Inc. and Starseed
Medicinal Inc., federally-licensed producers of cannabis products
for both the medical and adult-use markets. The Company owns and
operates a 158-acre state-of-the-art greenhouse, outdoor and
processing facility located in Strathroy, Ontario as well as CX
Industries Inc., a wholly-owned subsidiary which specializes in
cannabis extraction from the Company’s fully-licensed 26,000 sq.
ft. Aylmer, Ontario processing facility. With the addition of
Starseed, a medical-centric operator based in Bowmanville, Ontario,
WeedMD has expanded its multi-channeled distribution strategy.
Starseed’s industry-first, exclusive partnership with LiUNA, the
largest construction union in Canada, along with other employers
and union groups complements WeedMD’s direct sales to medical
patients. The Company maintains strategic relationships in the
seniors’ market and supply agreements with Shoppers Drug Mart as
well as six provincial distribution agencies where adult-use brands
Color Cannabis and Saturday are sold.
Follow WeedMD, Color Cannabis &
Starseed:
Facebook: https://www.facebook.com/weedmd/LinkedIn:
https://ca.linkedin.com/company/weedmdTwitter:
https://twitter.com/WeedMDInstagram:
https://www.instagram.com/weedmd/
Instagram: https://www.instagram.com/callitcolor/&Instagram:
https://www.instagram.com/starseedca/
For further information, please
contact:
For Investor Enquiries:Valter
PintoManaging Director KCSA Strategic
Communications1-212-896-1254weedmd@kcsa.com
For Media Enquiries:Marianella
delaBarreraVP, Communications & Corporate
Affairs416-897-6644marianella@weedmd.com
Forward Looking Information This press release
contains "forward-looking information" within the meaning of
applicable Canadian securities legislation which are based upon
WeedMD's current internal expectations, estimates, projections,
assumptions and beliefs and views of future events. Forward-looking
information can be identified by the use of forward-looking
terminology such as "expect", "likely", "may", "will", "should",
"intend", "anticipate", "potential", "proposed", "estimate" and
other similar words, including negative and grammatical variations
thereof, or statements that certain events or conditions "may",
"would" or "will" happen, or by discussions of strategy.
The forward-looking information in this news
release is based upon the expectations, estimates, projections,
assumptions and views of future events which management believes to
be reasonable in the circumstances. Forward-looking information
includes estimates, plans, expectations, opinions, forecasts,
projections, targets, guidance or other statements that are not
statements of fact. Forward-looking information in this news
release include, but are not limited to, statements with respect to
internal expectations, expectations with respect to actual
production volumes, expectations for future growing capacity and
the completion of any capital project or expansions.
Forward-looking information necessarily involve known and unknown
risks, including, without limitation, risks associated with general
economic conditions; adverse industry events; loss of markets;
future legislative and regulatory developments; inability to access
sufficient capital from internal and external sources, and/or
inability to access sufficient capital on favourable terms; the
cannabis industry in Canada generally; the ability of
WeedMD to implement its business strategies; competition; crop
failure; and other risks.
Any forward-looking information speaks only as
of the date on which it is made, and, except as required by law,
WeedMD does not undertake any obligation to update or revise any
forward-looking information, whether as a result of new
information, future events or otherwise. New factors emerge from
time to time, and it is not possible for WeedMD to predict all such
factors. When considering this forward-looking information, readers
should keep in mind the risk factors and other cautionary
statements in WeedMD's Annual Information Form dated June 21, 2019
(the "AIF") and other disclosure documents of WeedMD filed with the
applicable Canadian securities regulatory authorities on SEDAR at
www.sedar.com. The risk factors and other factors noted in the AIF
and other disclosure documents could cause actual events or results
to differ materially from those described in any forward-looking
information.
NEITHER THE TSX VENTURE EXCHANGE NOR ITS
REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE
POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR
THE ADEQUACY OR ACCURACY OF THIS RELEASE
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