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WeedMD Inc. provides corporate update; approves all matters at annual shareholder meeting

Published: 12:56 16 Jul 2018 EDT

1531763085_WeedMD-greenhouse
The company said it is fully funded for more than 640,000 sq/ft of indoor and greenhouse production at its recently licensed greenhouse in Strathroy, Ontario.

Cannabis producer and distributor WeedMD Inc. (CVE:WMD) released a corporate update today detailing its recent milestones and current growth initiatives as well as providing an update on its annual shareholder meeting, where all matters were approved. 

"As a trusted and proven LP in the cannabis industry, WeedMD has a reputation for pursuing complimentary business and corporate development initiatives in the emerging cannabis market," said Keith Merker, chief executive officer of WeedMD.

"We have a strong balance sheet which allows us to comfortably execute our expansion plans as well as provides us with the flexibility to continue pursuing strategic relationships and partnerships in Canada and internationally. We remain committed to our expanding medical business as well as capitalizing on the upcoming adult-use market opportunity."

Core strategy remains focused

The company said that it continues to focus on executing its core strategy: a differentiated medical platform, focused on long-term care and seniors market; product innovation, led by industry-leading genetics, a leading cultivation program, and research and development capabilities; and a multichannel distribution strategy, with institutional supply agreements for both medical and adult-use markets.

The company has more than $50mln in the bank, and all of its operational and expansion commitments are fully financed.

Funded capacity

The company said it is fully funded for more than 640,000 sq/ft of indoor and greenhouse production at its recently licensed greenhouse in Strathroy, Ontario. The greenhouse is now operating with two 10,000 sq/ft grow rooms in cultivation and a further 16 10,000 sq/ft flowering rooms coming by the end of 2018.

In addition to this, the company has started retrofitting an additional seven acres of greenhouse onsite and expects to commence cultivation in early 2019. 

World-class genetics 

The company said it has a comprehensive catalogue of leading genetics which has contributed to the production cultivation quality for its medical patients and future adult-use consumers.

It has also established an ancillary business of selling clones and starting materials to more than 20% of licensed producers. The company said this segment has recurring revenue and high margins.

Multiple distribution channels

WeedMD has been busy in this area, with multiple established supply contracts in the long-term care and seniors care markets, covering more than 3,400 beds. 

Additionally, the company secured a supply agreement with Shoppers Drug Mart and for the upcoming adult-use market, it has negotiated supply agreements with both Alberta Gaming, Liquor, & Cannabis Commission (AGLC) and British Columbia Liquor Distribution Branch (LDB) to date, with additional supply agreements expected to be announced soon.

Production innovation

The company is continuing to pursue research, development and formulation for both medical and for adult-use products.

In its medical area, six products selling through three brands have been established.

For adult-use and future natural health product (NHP) markets, the company has pursued infused beverages with partner Phivida Holdings Inc. (CSE:VIDA) and is working jointly with Revive Therapeutics Ltd. (CVE:RVV) for CBD-based therapeutics.

Branded product strategy

WeedMD said it has an established brand portfolio covering a wide product spectrum across the medical market and plans to add more brands as the medicinal market evolves.

It is starting with WeedMD (medical), Axis (oil for long-term care and seniors), Entourage (oil for ACMPR patients) and Phivida (infused beverages).

All matters approved at annual shareholders meeting

The company said all matters were approved at the company's annual and special shareholder's meeting held on July 11, 2018.

Shareholders re-elected included Keith Merker, Michael Kraft, Bruce Dawson-Scully, Gail Paech, Kevin McGovern and Rick Moscone as directors of the company to hold office until successors are duly elected or appointed.

Additionally, shareholders re-approved WeedMD's "rolling" incentive stock option plan and re-appointed RSM Canada LLP as the company's auditor to hold office until the next annual meeting of shareholders or until its successor is duly appointed. 

Shares of WeedMD were down 5.7% at C$1.50 on Monday mid-day. 

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