VANCOUVER, BC--(Marketwired - May 19, 2017) - Cannabis Wheaton Income Corp. (TSX VENTURE: CBW) ("Cannabis Wheaton", "CW", or the "Company") is pleased to report that First Access Medical Inc., the wholly-owned subsidiary of CW's partner Beleave Inc. ("Beleave") (CSE - BE) has been granted a cultivation license under the Access to Cannabis for Medical Purposes Regulations (the "ACMPR"). Beleave becomes CW's fifth licensed producer partner.
Chuck Rifici said "We want to congratulate Beleave on this major milestone and achievement! The Beleave team are an incredible group of professionals and industry leaders and we could not be happier for them on obtaining their cultivation license. In addition to their fantastic cultivation facility, the Beleave team has consistently demonstrated leadership in promoting the advancement of cannabinoid based science by entering into research partnerships to investigate cannabinoid purification methods, cannabinoid genetics and potential therapeutic uses of cannabinoids for pain management. Today we celebrate Beleave's success and look forward to working with Beleave as we execute Cannabis Wheaton's business plan of creating a world-class, risk mitigated financing and distribution platform."
DEAL TERMS WITH BELEAVE
The parties will work cooperatively to identify an appropriate second site to be acquired and developed by a newly formed special purpose subsidiary of Beleave ("NewCo"). The proposed second site is expected to be located in Ontario and will be designed to accommodate an estimated 200,000 square feet of cultivation space (the "Proposed Site").
Once such the Proposed Site and construction budget for the new facility have been agreed on by the parties, CW will provide, among other things: (i) up to $5 million to fund the purchase of the Proposed Site; and (ii) all necessary funding to complete the construction of the new facility. In return, CW will receive a 49% equity interest in NewCo and 50% of the proceeds (net of certain costs) of future wholesale or retail sales completed by NewCo.
The agreement remains subject to a number of conditions precedent, including availability of financing on the part of CW, receipt by Beleave of applicable Health Canada and other regulatory approvals, due diligence by the parties, execution of a definitive agreement and the ability of the parties to agree on future construction budgets and timelines.
The table below provides an update summary of the Company's partners, estimated future production to CW at fully capacity and CW's equity ownership.
|Stream Name||Province||Licensing Stage||Production for CW (Kg)||%1|
|2368523 Ontario Limited(Curative Cannabis)||ON ||Pre-Affirmation ||15,000 ||46% |
|Beleave Inc.||ON||Cultivation License||15,000||49%2|
|Broken Coast Cannabis Ltd.||BC||Sales License||15,000||10%, 49%2|
|Cannabco Pharmaceutical Corp.||ON||Pre-Affirmation||5,300||15.30%|
|Cannahort Agriculture Ltd.||NS||Pre-Affirmation||10,400||18.20%|
|CannTx Life Sciences Inc.||ON||Affirmation Letter||1,980||16%|
|Evergreen Medicinal Supply Inc.||BC||Cultivation License||6,600||6.60%|
|Great White North Growers Inc.||QC||Affirmation Letter||8,300||17.60%|
|Green Relief Inc.||ON||Sales License||115,500||24.45%|
|Harvest One Cannabis Inc.||BC/SK||Cultivation License||18,000||49%2|
|Lotus Ventures Inc.||BC||Pre-Affirmation||6,000||15.60%|
|PlanC BioPharm Inc.||BC||Affirmation Letter||7,000||49%|
|Sundial Growers Inc.||AB||Affirmation Letter||5,500||18.35%|
1 These are estimates based on current funding commitments and assume that CW has provided the streaming partner with the aggregate contribution amount set out in each streaming agreement. Some agreements have floating valuations which can impact ownership percentages at time of funding. 2 Represents equity in a new applicant.
"Early-Stage" indicates that the streaming partner's application is currently being reviewed internally by such streaming partner to determine whether it will amend its current application for resubmission pursuant to the ACMPR, acquire an existing LP or enter into a joint venture with an existing LP whereby such existing LP will use the streaming partner's current facility and related application materials to submit an LP application pursuant to the ACMPR.
"Pre-Affirmation" indicates that the LP applicant has yet to successfully proceed past the "Review" stage of the licensing processing. Once an LP applicant completes the "Review" stage of the licensing process, Health Canada will issue an "Affirmation Letter" which requires among other things, the LP applicant to provide an affirmative response to Health Canada that all necessary security features are present, installed and operational at the proposed facility. Upon providing an affirmation response to Health Canada, a Pre-Licensing Inspection will be scheduled for the proposed facility.
Cannabis Wheaton also wishes to disclose that is in the final stage of negotiation with a potential streaming partner who is currently a licensed producer with a cultivation and sales license pursuant to the ACMPR. Should a transaction be consummated, the potential streaming partner would become Cannabis Wheaton's 15th streaming partner and sixth licensed producer.
ON BEHALF OF THE BOARD
Chairman & CEO
About Cannabis Wheaton Income Corp. (TSX VENTURE: CBW)
Backed by a team of industry experts, Cannabis Wheaton is the first cannabis streaming company in the world. Our streams will include production from across Canada coming from our partners comprised of licensed producers of cannabis (LP) and LP applicants. Cannabis Wheaton's mandate is to facilitate real growth for our streaming partners by providing them with financial support and sharing our collective industry experience.
For more information about Cannabis Wheaton and our management team, please visit: http://www.cannabiswheaton.com, or follow us on Twitter @CannabisWheaton. Call: 1-604 687 7130 Email: Mario@skanderbegcapital.com http://www.skanderbegcapital.com.
This news release contains certain "forward-looking information" within the meaning of applicable Canadian securities law. Forward-looking information is frequently characterized by words such as "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or information that certain events or conditions "may" or "will" occur. This information is only a prediction. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking information throughout this news release. Forward-looking information includes, but is not limited to: the ability to generate revenue through the streaming agreements, the ability to consummate transactions which are currently in discussions, requirements to obtain additional financing, timeliness of government approvals for granting of permits and licences, including licences to cultivate cannabis, completion of the facilities, where applicable, actual operating performance of the facilities, regulatory or political change, competition and other risks affecting the Company in particular and the medical cannabis industry generally. Forward-looking information is based on the opinions and estimates of management at the date the information is made, and is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.