Cannabis Wheaton Income Corp. (CBWTF) announced that it entered into a definitive acquisition agreement to acquire licensed dealer Dosecann Inc. in an all-stock deal that is expected to close on or about April 30. 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.
According to the company statement, Cannabis Wheaton will acquire all of the outstanding securities of Dosecann by way of a “three-cornered amalgamation.” Cannabis Wheaton will pay the holders of the Dosecann Securities an aggregate of up to $38,000,000, payable in common shares of Cannabis Wheaton subject to the satisfaction of certain post-closing time and performance-based milestones. As part of the acquisition, all outstanding convertible securities of Dosecann will either be converted into Dosecann common shares and exchanged for consideration shares on the closing of the acquisition.
Cannabis Wheaton has already had a busy 2018. Last month, Cannabis Wheaton announced that it has entered into a binding definitive agreement with its streaming partner FV Pharma to develop all aspects of FV’s cannabis cultivation facility in mutually agreed staged phases, with the potential to build out the largest indoor cannabis cultivation facility in the world. The FV PPharma facility hosts an existing 620,000 square feet of building space and is famously known as the former KRAFT food manufacturing facility.
In February, it announced that it entered into a joint venture with Peter Quiring, one of Canada’s largest greenhouse builders and operators, via a newly formed subsidiary called Greenhouse Co. to develop, construct and operate a state-of-the-art purpose-built greenhouse for cannabis cultivation in Leamington, Ontario with Mr. Quiring acting as Chief Executive Officer of GreenhouseCo.
Cannabis Wheaton stock lately traded on the Toronto Stock Venture Exchange at C$1.43 down from its 52-week high of C$2.97 and the OTC Marketplace stock lately traded at $1.11 down from its 52-week high of $7.08.