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WeedMD sells $10 million in convertible debenture units

Each individual unit contains a debenture with an 8.5% interest rate and 625 share purchase warrants

One hand holding money out to another
The principal of each debenture can be converted into common shares after 36 months

WeedMD Inc (CVE:WMD) (OTCMKTS:WDDMF) is raking in $10 million, the company announced Wednesday, thanks to a convertible debenture deal with Mackie Research Capital. 

The company sold 10,000 debenture units for $1,000 apiece on a bought-deal basis. Each individual unit contains a debenture with an 8.5% interest rate and 625 share purchase warrants, exercisable at a price of $1.80 per share. 

READ: Haywood reiterates Buy rating and $3.50 price target on WeedMD following 'solid' 2Q financials

The principal of each debenture can be converted into common shares after 36 months. Should WeedMD shares trade above $3.60 for 20 days in a row, that timeline could be accelerated.

The company said it plans to use the funds for general corporate purposes and working capital.

WeedMD stock closed at $1.56 Wednesday in Toronto having been halted during afternoon trading pending the news. 

Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com 

Follow him on Twitter @andrew_kessel

Quick facts: WeedMD Inc

Price: 0.315 CAD

TSX-V:WMD
Market: TSX-V
Market Cap: $66.23 m
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