alexgreat replied the topic: Cannabis Wheaton TSXV:CBW
Good move so far
2017-06-05 06:20 ET - News Release
Mr. Chuck Rifici reports
CANNABIS WHEATON PROVIDES UPDATE ON PRIVATE PLACEMENT AND RELATED MATTERS
Cannabis Wheaton Income Corp. has terminated its previous engagement letter with Eight Capital and Canaccord Genuity Corp., in connection with its previously announced best efforts private placement of special warrants and convertible debenture units. The company and the co-lead agents have mutually agreed to terminate the engagement letter.
Over the preceding week the company has been the subject of multiple inflammatory false or misleading reports, published primarily on-line by persons seeking to discredit the company. Cannabis Wheaton as well the co-lead agents have been referenced and targeted about various matters, including the ownership of securities in Cannabis Wheaton by employees of the co-lead agents, despite such ownership being disclosed in the company's press release dated May 23, 2017.
Chuck Rifici said: "Since the previously announced private placement, only positive events have occurred within the company's business including the signing of the agreement with Abcann Global Corp. The co-lead agents confirmed that the termination of the engagement letter was not in any way related to due diligence conducted by the co-lead agents or investors' reception of the company's private placement.
"While we are disappointed at the timing of the termination of the engagement letter with the co-lead agents, we are pleased at the enthusiastic response from the syndicate members and other leading firms seeking to take up the agency role in the private placement. We are acting swiftly to finalize an agreement with a new broad syndicate of agents to facilitate an expeditious closing of the proposed private placement.
"Finally, further to the company's press release dated May 31, 2017, we wish to confirm in the strongest possible terms that no law enforcement or other regulatory agencies have contacted the company and that any allegations to the contrary being published on-line are entirely without merit."
About Cannabis Wheaton Income Corp.
Backed by a team of industry experts, Cannabis Wheaton is the first cannabis streaming company in the world. The company's streams will include production from across Canada coming from its partners comprising licensed producers of cannabis (LP) and LP applicants. Cannabis Wheaton's mandate is to facilitate real growth for its streaming partners by providing them with financial support and sharing its collective industry experience.
News well its out finally, see how it trades tomorrow
See News Release (C-ABCN) ABcann Global Corp
Mr. Chuck Rifici of Cannabis Wheaton reports
ABCANN GLOBAL AND CANNABIS WHEATON SIGN INTERIM AGREEMENT FOR CONSTRUCTION OF ADDITIONAL CANNABIS CULTIVATION FACILITY
ABcann Global Corp. and Cannabis Wheaton Income Corp. have entered into a binding interim agreement to finance the construction of 50,000 square feet of cultivation space (the expansion production area) at ABcann's proposed cannabis cultivation facility to be located in Napanee, Ont., known as the Kimmett facility. Pursuant to the agreement, Cannabis Wheaton has agreed to invest $30-million in ABcann as follows:
On the date that is the earlier of 10 days of the final closing of Cannabis Wheaton's previously announced financing or by June 30, 2017, Cannabis Wheaton will subscribe for $15-million of ABcann common shares at an agreed-upon valuation of $2.25 per ABcann share.
On the date that is the earlier of 10 days of Cannabis Wheaton raising an aggregate of $150-million or March 31, 2018, Cannabis Wheaton will subscribe for an additional $15-million at a price per ABcann share equal to the greater of two times the 10-day volume-weighted average trading price of the ABcann shares at the relevant time or $2.25.
Upon completion of the $30-million investment and upon accepting ABcann's construction budget and timeline for the construction of the expansion production area, Cannabis Wheaton will provide all necessary financing to complete the construction of the expansion production area. This expansion will be in addition to ABcann's current 100,000-square-foot facility that is commencing construction imminently. In return, Cannabis Wheaton will receive 50 per cent of the proceeds (net of certain costs) of future wholesale or retail sales completed by ABcann with respect to cannabis produced in the expansion production area. Cannabis Wheaton's entitlement to the EPA (Environmental Protection Agency) allocation will not begin until after the completion of Cannabis Wheaton's $30-million investment.
Chuck Rifici of Cannabis Wheaton said: "This now adds a sixth licence to the Cannabis Wheaton portfolio, and our first publicly traded producer with a sales licence. Over the past three years, I've watched ABcann's involvement and evolution in the Canadian cannabis industry. They are widely recognized for their proprietary cultivation methods that produce high-quality cannabis with industry-leading yields. It's clear to us that they had their pick of funding sources, so it's an honour to make this announcement today.
"This partnership will bring to ABcann the support and funds necessary to break ground on the Kimmett site. Once construction is complete, the additional cultivation space will provide Cannabis Wheaton with an estimated eight million grams of cannabis per year."
"This partnership is a great opportunity for both ABcann and Cannabis Wheaton. ABcann significantly enhances its cash position through the equity investment, providing ABcann with the capital to construct up to 180,000 square feet of fully funded capacity," said Aaron Keay, chief executive officer of ABcann.
The agreement remains subject to certain conditions precedent, including receipt by ABcann of applicable Health Canada and other regulatory approvals and the ability of the parties to agree on future construction budgets and timelines.
About ABcann Global Corp.
ABcann was one of the first companies to obtain a production licence under the marijuana for medical purposes regulations, which it received on March 21, 2014. It also obtained a sales licence on Dec. 31, 2015. Situated in Napanee, Ont., ABcann has spent the last two years focused on changing the face of medical cannabis. ABcann intends to be the first company to have repeatable products in multiple continents and to provide standardized medical cannabis to the world.
lynnsa10 replied the topic: Cannabis Wheaton TSXV:CBW
Thanks DJ, there is no doubt the sector is frothy, the question is how much longer and higher. Until we reach the point where supply starts to pressure demand and prices soften things could go higher. Canopy's last QTR showed year or year growth of over 200% and they claim they cannot keep up with demand.
Will be interesting times for sure, legalization in Canada and California will be huge demand for licensed growers