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Thursday, Feb 9, 2023
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

The weed wire

WeedMD acquires another union medical supply agreement

The company has made an agreement with the Insulators Local 95 Health & Welfare Trust Fund to supply union members with medical weed

WeedMD acquires another union medical supply agreement

WeedMD Inc. (TSX-V:WMD and OTCQX:WDDMF) is now the preferred supplier of medical cannabis to another union.

The company announced Wednesday it has made an agreement with the Insulators Local 95 Health & Welfare Trust Fund to supply union members and their dependents with medical weed as an insured benefit with no out-of-pocket costs.

The agreement was made through WeedMD’s subsidiary Starseed Medicinal Inc., which it merged with last November.

Read more: WeedMD announces acquisition, shares nosedive following earnings report 

Mired in a rocky press cycle, WeedMD effectively acquired the ability to sell discounted medial cannabis to members of Laborers’ International Union of North America (LiUNA), a union with over 57,000 members in Ontario’s construction industry.

The news was viewed as positive at the time, but was overshadowed by a underwhelming earnings report.

This year has been off to a shaky start for WeedMD, whose previous CEO Keith Merker stepped down on Feb. 4.

Read more: WeedMD CEO says medical cannabis shouldn’t be taxed, 2020 will be a shakeout: Q&A

Since then the company has hired Angelo Tsebelis, previously the president of Starseed into the chief executive role. But WeedMD’s market valuation has dipped 37 per cent since his hiring — to $0.50 a share.

In a press release, the new CEO expressed optimism about Starseed becoming the platform of choice for benefits providers, insurers and their members.

“We have rolled-out a streamlined process for introducing medical cannabis as part of an individual’s health and wellness journey by developing personalized treatment plans with healthcare experts, and by simplifying the reimbursement process,” Tsebelis said. “As a result, we are seeing broader acceptance to medical cannabis and we are pleased to welcome the Insulators Local 95 Health & Welfare Trust Fund’s members to Starseed’s full-service medical cannabis program.”

The administrator of the trust fund said it was proud to introduce Starseed’s progressive, full-service medical cannabis platform to its members and their employers, who are looking to expand their health and wellness therapies with the safe access to medical cannabis.

“Together, we are educating and removing the financial barriers as we legitimize cannabis as a medical and wellness therapy for our members,” Benefit Plan Administrators Limited president Jeffrey C. Baldwin said in the release.

Top image via Deposit Photos

nick@mugglehead.com

@nick_laba

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