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.
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