Cannabis Wheaton Lands $100 Million Bought Deal Financing

The cannabis streaming company Cannabis Wheaton Income Corp. (CBW) has just landed a gigantic financing deal. On May 22, 2018, the company announced that it has entered into an agreement with a syndicate of underwriters led by BMO Capital Markets, in which the underwriters have agreed to purchase on a bought deal basis 71,500,000 units of the Company at a price of C$1.40 per unit, for a sum total of C$100 million .

Each unit entitles its holder to acquire one common share of the company and one half of one common share purchase warrant. A full purchase warrant entitles the holder to purchase one common share at a price of C$1.85 for a two year period following the closing date.

The company has also agreed to allow the underwriters the option of purchasing an additional 15% of units at a price of C$1.40 per unit until the date that is 30 days following the closing of the Offering. If the option is exercised, Cannabis Wheaton will have raised an additional C$15 million .

The offering is expected to close on May 31, 2018. Once closed, the company will used the proceeds from the offering to fund domestic and international operations, capacity expansion, general working capital, and for any new potential investment opportunities it might come across.

Cannabis Wheaton Acquisitions and Partnerships

Over the last several months, Cannabis Wheaton has been busy building its portfolio the partnerships and acquisitions. Just last month the company acquired two cannabis companies, Robinson’s Cannabis Incorporated and Dosecann Inc. Acquired through an all-stock deal, Dosecann is a late-stage “Licensed Dealer” applicant pursuant to the Narcotic Control Regulations with a purpose-built 42,000 square foot facility located in Charlottetown, Prince Edward Island. Robinson’s is a private held cannabis company that is currently building a 27,700 square foot purpose-built facility for cannabis cultivation in Kentville, Nova Scotia. Although not currently licensed, Robinson’s has completed the review process on paper and is confirming its readiness stage.

The company has also engaged in a joint venture with Peter Quiring, one of the largest greenhouse builders and operators in Canada, to build a cannabis cultivation greenhouse facility in Leamington, Ontario; operating under the newly formed subsidiary GreenhouseCo., with Quiring serving as CEO.

Stock Performance

Trading on the Toronto Stock Venture Exchange, Cannabis Wheaton’s stock is currently trading at CC$1.40, down from its 52-week high of C$2.97.

William Sumner

William Sumner is a freelance writer specializing in the legal cannabis industry. You can follow William on Twitter @W_Sumner or on Medium.

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