Cannabis Wheaton, the World’s First Cannabis Streaming Company, Unveils Platform Partners
VANCOUVER, BC–(Marketwired – May 10, 2017) –
Cannabis Wheaton Income Corp., (TSXV: CBW) (OTC: KWFLF) (“Cannabis Wheaton”, “CW”, or the “Company”) is pleased to introduce its 14 streaming partners and 16 sites across 6 provinces.
Chuck Rifici, Chairman and CEO of Cannabis Wheaton stated:
“Cannabis Wheaton management and advisors have long had a strong presence in the industry. This has allowed us to engage with those who we believe are the medical cannabis leaders, as well as those we have identified as future leaders in a legalized cannabis environment.
“The company has assembled a critical mass of streaming partners at various stages ranging from sales license, cultivation license, affirmation letter holders and advanced pre-license companies which all will benefit from a symbiotic relationship with CW and with each other.
“As the number of component companies grow, the benefits grow within the system — that is the key to the critical mass that CW begins its life with — and that will allow it to scale further, increasing the value of the platform from the perspective of the Company and the underlying LPs and applicants, with every new partnership.
“By leveraging the collective experience of our team (See May 8, 2017 News Release) and our cross-country platform, we are enabling the next generation of LPs — LP 2.0. Cannabis Wheaton believes that this is a powerful model for the industry going into an adult recreational market and we are proud to be the only company of seasoned professionals from the cannabis space to have had such a strong validation from businesses spanning the spectrum of development and maturity.”
We will continue to profile our partners more specifically and extensively in the days and weeks ahead so that shareholders and stakeholders alike can learn more about the unique and dynamic companies in the CW family.
Chuck Rifici, Chairman and CEO
As previously disclosed, Cannabis Wheaton’s first cohort of streaming partners includes 14 outstanding companies in six provinces across Canada — including 2 sales license holders, 2 cultivation license holders, 4 affirmation letter holders and 6 advanced pre-affirmation stage applicants. This consists of licensed producers of cannabis (LPs) (pursuant to the Access to Cannabis for Medical Purposes Regulations (ACMPR)) and LP applicants. Collectively, our streaming agreements include future capacity of approximately 1,300,000 equivalent square feet of cannabis cultivation and production capacity net to Cannabis Wheaton by the end of 2019, according to industry recognized production averages.
Under each streaming agreement, upon the satisfaction of certain conditions precedent including having sufficient capital available for financing, performance of satisfactory due diligence and receipt by certain streaming partners of applicable regulatory approvals, Cannabis Wheaton will provide financing to the applicable streaming partner in consideration for: (i) the issuance of an equity interest in the streaming partner at an agreed-upon valuation; and (ii) an allocation of a portion of the streaming partner’s cannabis production yield at either a fixed price or a cost-plus price. The yield component will be for a defined period of time ranging from 10 to 99 years depending on the streaming partner.
¹These are estimates based on current funding commitments. Some agreements have floating valuations which can impact ownership percentages at time of funding.
²Represents equity in a new applicant
“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.
We invite shareholders and interested parties to visit our new corporate website at: http://www.cannabiswheaton.com to learn more.
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 late-stage 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.