Convert markdown documents to HTML files that can be opened or transfererred as single files, no need for a web server or bundling a whole directory.
Usage
First, open a .md file that with relative references to images in the form:
A png:
 # the image is located at png.png, in the same directory as the markdown file
A gif:
 # the image gif.gif is in a `media` directory along side the markdown file
A jpeg:

Note the images must be in your workspace, http links will not be included.
Then, run the command MD to HTML: Convert Document to HTML from either the command paalette or the editor action bar:
An HTML document will be created alongside the markdown file. This can be sent to anyone as a single and opened without bundling the images alongside or starting up a web server.