The cannabis industry has gone global and Canada has been capitalizing on this emerging multi-billion-dollar opportunity.
Investors have recognized and have invested in Canada’s opportunity and the country has attracted more than $1 billion in new capital in the last year.
One company that is looking to capitalize on this opportunity is Cannabis Wheaton (CBW: TSV Venture) (KWFLF: OTCQB). The company introduced a streaming financing model to the cannabis industry and has attracted several leading firms to its investment portfolio.
Cannabis Wheaton’s streaming partners include 15 companies in six provinces across Canada. Of these companies, 3 have sales licenses (ABcann, Broken Coast, and Green Relief) and 4 have cultivation licenses, and 3 have affirmation letters.
Finalizes Agreement with ABcann
Today, Cannabis Wheaton Income Corp. (CBW.V) (KWFLF) and ABcann Global Corporation (ABCN.V) (ABCCF) signed a definitive subscription agreement where Cannabis Wheaton agreed to purchase $15 million worth of ABcann common stock at $2.25 a share.
The investment is the first part of a larger phased investment by Cannabis Wheaton to fund the development of ABcann’s proposed cannabis cultivation facility in Napanee, Ontario known as the Kimmett facility.
ABcann received its production license back in March 2014 and it received its sales licenses in December 2015. The company’s flagship facility utilizes proprietary growing technology to produce high-yielding plants that are consistent from harvest to harvest. ABcann cultivates cannabis in controlled environmental chambers which optimizes every variable to achieve the consistency that is needed for a standardized product. The company can control environmental and nutrient demands for specific cannabis
Completes a $50+ Million Financing
In late June, Cannabis Wheaton raised $50.2 million in aggregate gross proceeds and closed its private placement of special warrants and convertible debenture units. The company plans to use the net proceeds to finance its streaming partners and for general corporate and working capital purposes.
Cannabis Wheaton sold 30,000 convertible debenture units for $30 million and the remainder came from the sale of 20,252,203 special warrants.
Mackie Research Capital Corporation acted as the sole broker and received $3.4+ million in cash commissions and 3,419,549 broker warrants.
Continues to Expand and Advance its Portfolio
Shortly before Cannabis Wheaton closed its financing agreement, the company announced that its partner, Curative Cannabis applied to become a licensed producer with its proposed facility in Chatham-Kent, Ontario. Curative’s facility has been designed by Cascadia AC and is expected to have an initial footprint of 21,000 sq. ft.
The facility has significant room for expansion since Curative owns an option to purchase the neighboring 33.09 acres. This option provides the option to expand the facility up to 800,000 sq. ft.
Earlier in June, Cannabis Wheaton’s partner, Sundial Growers was granted a cultivation license for its Alberta facility. Sundial is the company’s seventh licensed producer partner and has 1 of 3 licenses in Alberta.