Weedmd reports fourth quarter and fiscal year 2017 financial results tsx venture exchange wmd gas monkey monster truck hellcat

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TORONTO, May 01, 2018 (GLOBE NEWSWIRE) — WeedMD Inc. (TSX-V: WMD) (OTC:WDDMF) (FSE:4WE) (“ WeedMD” or the “ Company”), a federally-licensed producer and distributor of medical cannabis, has announced its financial results for the fourth quarter and fiscal year ending December 31, 2017.

WeedMD is pleased to report revenue of $1.4 million in its first year of operations. Revenues were driven by a combination of cannabis sales to medical patients in addition to the sale of wholesale cannabis and genetics to licensed producers. Adjusted operating loss increased to $5.2 million from $2.1 million in the prior year due to an increase in headcount, marketing and development costs associated with product launches and ongoing sales as well as public company expenses. The company currently has a strong cash balance of $48 million from recent financings and the exercise of warrants.

“We are incredibly proud of what we were able to accomplish in 2017, and looking forward, are even more excited about the years to come, especially with the recent announcement of our merger with Hiku,” said Keith Merker, CFO of WeedMD (see Hiku Brands Company Ltd. (CSE:HIKU) and WeedMD merger press release here). “Our large-scale, state-of-the-art greenhouse expansion is coming online shortly and we remain focused on executing at our new facility. We remain committed to our growing medical cannabis business and are also now looking forward to leveraging Hiku’s brands and retail footprint to sell our product coast-to-coast in the coming adult-use market.”

¹Adjusted Operating Loss is not a recognized measurement under IFRS and this data may not be comparable to data presented by other companies. Management believes Adjusted Operating Loss to be an important measure of the Company’s day-to-day operations, by excluding non-cash gains and losses and/or non-recurring items.

• Signed preferred supply agreements with four long-term care and retirement home providers totalling 29 homes with more than 3,000 beds across Canada, successfully executing on the Company’s core medical initiative of targeting seniors including long-term care residents

• Entered into a definitive agreement to merge with Hiku Brands, bringing together two highly-complementary businesses and creating a unique and market-differentiating vertically integrated company with an industry-leading portfolio of brands, growing retail footprint, and significant cannabis production capabilities. For more information on the transaction, please see Hiku’s investor presentation

• Completed strategic investments in Blockstrain Technology Corp., which has developed a comprehensive cannabis genetics archiving platform, and Snipp Interactive Inc., a global loyalty and promotions company focused on disruptive engagement platforms for consumers

The Company’s financial statements and related management’s discussion and analysis for the period are available under the Company’s profile on SEDAR at www.sedar.com. All amounts are expressed in Canadian dollars and are in accordance with International Financial Reporting Standards unless otherwise noted.

WeedMD Inc. is the publicly-traded parent company of WeedMD Rx Inc., a federally-licensed producer and distributor of medical cannabis and oils under the ACMPR. The Company operates a 26,000 sq. ft. indoor facility in Aylmer, Ontario, and is awaiting its second-site cultivation license for its greenhouse facility located in Strathroy, Ontario, representing 610,000 sq. ft. or 14 acres under glass. WeedMD has entered into supply agreements in addition to strategic relationships with established cannabis brands. WeedMD is focused on providing medical cannabis to the seniors’ markets in Canada through its proprietary seniors care program. It is dedicated to educating healthcare practitioners and furthering public understanding of the role that medical cannabis plays – including as it pertains to regulatory requirements, indications and potential side effects.

This press release contains forward-looking information based on current expectations. Statements about the date of trading of the Company’s common shares on the Exchange and final regulatory approvals, among others, are forward-looking information. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements. The Company assumes no responsibility to update or revise forward-looking information to reflect new events or circumstances unless required by law.