Cannabis Wheaton Archives - Green Market Report

Video StaffMay 25, 2018

It’s actually been a fairly quiet week for cannabis financial news.

In political news, the New York Democratic Party said it is endorsing legalizing marijuana. The party recently held its primary and while actress Cynthia Nixon made a big splash, Governor Cuomo overwhelmingly won the race. Nixon was pushing hard for legalization and managed to nudge Cuomo into a more accommodating stance towards legalization.

Cannabis Wheaton (CBWTF) landed a gigantic C$100 million deal with a group of underwriters led by BMO Capital Markets. The group has the option for an over-allotment that could bring in an additional C$15 million. The deal is expected to close near May 31.

Newstrike Resources (NWKRF) snagged a private placement deal valued at $40 million. The net proceeds will be used for growth and working capital.

Aurora Cannabis (ACBFF) is continuing its acquisition push with its latest decision to take a 9% ownership stake in CTT pharmaceutical Holdings valued at $1 million. The company has been on a spending spree as it builds an empire to compete in the Canadian market.

Leafbuyer Technologies (LBUY) was flagged by the OTC Markets group for heavy stock promotion. The company has spent thousands for promotion while reporting a million dollar loss in the last quarter. In fact, most of the company’s revenue has been spent on promotion. The company said its insiders haven’t sold any stock and said the promotions haven’t increased the stock price. The flagging is part of an OTC Markets push to make sure investors are informed about stock promotions.

Cronos Group (CRON) uplisted its stock from the Toronto Venture Exchange to the Toronto Stock Exchange. The stock began trading at its new home on Wednesday.

Practically taking its place is Khiron Life Sciences, which will begin trading on Friday at the Toronto Venture Exchange under the symbol KHRN. It’s the first cannabis producer with core operations in Columbia.

William SumnerMay 23, 2018

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 SumnerMay 17, 2018

This is your Daily Hit of cannabis news for May 17, 2018:

On The Site

GW Pharmaceuticals

The biopharmaceutical company GW Pharmaceuticals (GWPH), along with its U.S. subsidiary Greenwich Biosciences, announced the publication of its Phase 3 study of cannabidiol oral solution in patients with Lennox-Gastaut syndrome (LGS) in The New England Journal of Medicine.

Cannabis Delivery Service Stemless Looks To Take On Eaze

Stemless is a Portland-based startup that gives cannabis consumers an easy way to buy from their local dispensaries without having to leave home. “We are an online platform that helps dispensaries connect with their customers, so their customers can order from them in a way that is convenient, fast and, most of all, legal,” says Stemless founder Koushi Sunder. The company is entering the Eaze marketplace at a time when Eaze is coming under fire for its approach towards consumers.

Bourbon Heir Says End of ‘Prohibition 2.0’ Will Lead To Cannabis Fortunes

Ben Kovler is bringing Green Thumb Industries or GTI public in Canada, according to Bloomberg due in large part to similarities seen between the liquor industry in the 1930s and cannabis today. Speaking with Bloomberg, Kovler said he intends to bring GTI public via a reverse merger with a publicly traded Canadian company. Kovler, whose family invested $5,000 in the distiller group that would eventually become Jim Beam bourbon, is also the shareholder of GTI.

In Other News

Organigram Holdings Inc.

Organigram Holdings Inc. (OGI) announced today that it has received a “Permit to Export Cannabis” from Health Canada, allowing the company to export medical cannabis to Cannatrek Medical PTY Ltd., a licensed medical cannabis company in Melbourne, Australia. “Today we are proud to announce our ability to commence international sales through the receipt of a Permit to Export Cannabis from Health Canada,” said Greg Engel, CEO of Organigram. “This is only the beginning. Last week we announced our intentions to invest in and sell to a German distributor. Today we announce our ability to sell into Australia. We continue to strive towards becoming a global leader in the medical cannabis trade.”

Cannabis Wheaton Income Corp.

Cannabis Wheaton Income Corp. (CBW) has announced that it has closed the acquisition of all of the outstanding securities of Dosecann Inc. for a price of $38 million, payable in common shares of Cannabis Wheaton. Dosecann is located in Charlottetown, Prince Edward Island and is currently in the process of completing a 42,000 square foot for the research, development, extraction, formulation, filling, and packaging of cannabis products. Pending regulatory approval, Dosecann will use its facility to make a variety of cannabis products for the medicinal market and, pending approval, the adult use market as well.

Aphria Inc.

Aphria Inc. (APH) announced that it has chosen Great North Distributors, Inc., a wholly-owned Canadian subsidiary of Southern Glazer’s Wine & Spirits, as its exclusive distributor for adult-use cannabis products throughout Canada. Under the agreement, Great North will create a dedicated sales team that will be responsible for selling Aprhia’s portfolio of cannabis products and its parent company, Southern Glazer’s will utilize its data analytics to provide data-driven support for Aphria. “We’re delighted to have Great North Distributors dedicated to our business. This deal enables us to fully execute on our adult-use strategy from day one, and we know that Great North Distributors has the right resources and expertise to allow us to capitalize on the opportunities in the industry on a national scale,” commented Aphria CEO Vic Neufeld.

StaffMay 14, 2018

It’s time for your Daily Hit of cannabis financial news for May 14, 2018.

On The Site

Canopy Growth

Canadian-based medical marijuana company Canopy Growth (TWMJF) announced that it has applied to the New York Stock Exchange (ICE) to list its shares. The company said that it expects to begin trading at the exchange by the end of May using the ticker symbol CGC. The company currently trades in Canada on the Toronto Stock Exchange using the symbol WEED and also on the OTC Markets with the symbol TWMJF. The New York Stock Exchange has been reluctant to engage with cannabis companies citing the legality of marijuana in the United States, although a handful of entities like Innovative Industrial Properties (IIPR) and India Globalization Corp. (IGC) have squeaked in. It seems Canadian-based companies pass the smell test since marijuana is legal in that country.

In other news, Canopy said that it planned to acquire 33% of BC Tweed Joint Venture Inc., which are the shares that it didn’t already own. That deal is expected to close in July and as a result, Canopy said it will issue $374 million worth of its common stock.

Aurora Cannabis

After denying rumors last week about a potential acquisition, Aurora Cannabis (ACBFF) announced that it was entering an agreement to acquire MedReleaf (MEDFF) in a deal valued at C$3.2 billion. The acquisition brings together two leading producers in Canada’s medical marijuana community enabling them to deliver a capacity of over 570,000 kg of cannabis a year. MedReleaf is known for its ability to reduce the cash cost per gram while still delivering a premium product, Aurora is equally known for its automated greenhouses and low production costs.

According to a company statement, MedReleaf shareholders will get 3.575 common shares of Aurora for each share they own of MedReleaf. The statement read, “Upon completion of the transaction, existing Aurora and MedReleaf shareholders would own approximately 61% and 39% of the pro forma company, respectively, on a fully diluted basis. The Exchange Ratio implies a price of C$29.44 per MedReleaf common share and a premium of approximately 34%, based on the 20-day volume weighted average prices of Aurora and MedReleaf common shares on the Toronto Stock Exchange as of May 11, 2018 .”

In Other News

iAnthus Capital Holdings

After the market closed on Monday, iAnthus Capital Holdings (ITHUF) announced that it received a $50 million investment from Gotham Green Partners, which management believes to be the largest investment to date by a single investor in a publicly traded U.S. cannabis operating company. The company plans to allocate the proceeds of this financing by repaying $20 million of a one-year note and accrued interest to VCP Bridge LLC, continued cultivation and dispensary build-outs in New York and Florida markets and potential expansion activities consistent with iAnthus’ strategic objectives.

Gloucester Street Capital

Gloucester Street Capital, an owner of one of only 10 medical cannabis cultivation and dispensary licenses in New York State, has closed a $6.5 million growth capital round. Viridian Capital Advisors, through its broker-dealer Pickwick Capital Partners, LLC, served as the placement agent for the Company.

General Cannabis

General Cannabis (CANN) announced first quarter financial results with revenues of $942,482, a 31% increase over 2017 first quarter revenues of $719,105. The stock fell over 2% as the net losses rose 70% year over year to $4.4 million versus last year’s net loss of $2.6 million.
“We continue our focus on organic growth and driving each business segment to profitability,” said Joe Hodas, Chief Operating Officer of General Cannabis. “We have an aggressive, but achievable, plan to grow revenue in each of our existing business segments, while also evaluating opportunities for operational efficiencies. Hodas continued, “While California’s regulated market’s rollout has been slower than anticipated, we made great progress in the quarter developing several key relationships that we believe will generate revenue for both our Security and Operations segments in the second quarter and throughout 2018.”

Emblem Corp.

Emblem Corp. (EMMBF) and Canntab Therapeutics Limited (CSE: PILL) announced the receipt of Health Canada approval for research and development activities on oral sustained release formulations of cannabinoids, which are the proprietary products conceived by Canntab representing significant progress in Emblem and Canntab’s partnership to develop long-acting cannabis formulations.

Cannabis Wheaton Income Corp.

Cannabis Wheaton Income Corp. (CBWTF) announced that it entered into a definitive licensing agreement with Dixie Brands, Inc. pursuant to which Cannabis Wheaton will have the exclusive license to Dixie’s intellectual property, product branding and formulation methodologies related to over 100 cannabinoid-infused products in Canada and Mexico.

StaffApril 9, 2018

Cannabis Wheaton Income Corp. (CWBTF) acquired Canadian private cannabis company Robinson’s Cannabis Incorporated in an all-stock deal. Cannabis Wheaton will acquire all of Robinson’s issued and outstanding shares.

Robinson’s is currently building a 27,700 square foot purpose-built facility for cannabis cultivation in Kentville, Nova Scotia. Robinson’s doesn’t have a license at this time but has completed the review process on paper and is confirming its readiness stage.

According to the company statement, Robinson shareholders will receive 5,369,126 common shares upon closing of the acquisition, 2,013,421 common shares issued and held in escrow to be released to Robinson’s shareholders upon Robinson’s receiving a cultivation license under the ACMPR and 2,013,421 common shares issued and held in escrow to be released to the Robinson’s shareholders when the company receives a sales authorization under the ACMPR.

Cannabis Wheaton seems to be focused on expanding its cultivation portfolio. The company also recently said it had entered into a joint venture with Peter Quiring, one of the largest greenhouse builders and operators in Canada, to build a brand new cannabis greenhouse facility in Leamington, Ontario. The joint venture will operate through a newly formed subsidiary dubbed GreenhouseCo. Quiring will act as Chief Executive Officer of GreenhouseCo.

Cannabis Wheaton Acquisitions

Cannabis Wheaton recently acquired DoseCann in an all-stock deal as well. 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.

Last week, the company announced it had acquired 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.

Stock Performance

Cannabis Wheaton stock was lately trading at $1.22 on the OTC Markets, down from its 52-week high of $2.70. The Toronto Exchange stock was last trading at C$1.55, a drop for its 52-week of C$2.97.

StaffApril 4, 2018

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.

Stock Performance

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.

StaffMarch 5, 2018

Aurora Cannabis

Aurora Cannabis (ACBFF) suggested that it might follow in Cronos Group’s (CRON) footsteps to the NASDAQ (NDAQ). A tweet to the company asked whether it might make a similar move, Cam Battley responded, “Well, in Canada we uplisted from CSE to TSXV to TSX. And in the US from OTCQB to OTCQX. So what would be your guess? ;)”

Cannabis Wheaton Income Corp.

Cannabis Wheaton (CBWTF) announced it has entered into a binding definitive agreement with its streaming partner FV Pharma Inc. 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 Pharma state-of-the-art facility hosts an existing 620,000 square feet of building space and is famously known as the former KRAFT food manufacturing facility.

Alliance Growers Corp.

Alliance Growers Corp. announced the addition of state-of-the-art greenhouses for year-round nurseries of cannabis plants for the production of a propriety CBD strain at the Company’s Cannabis Botany Centre. The initial rollout plans for up to 200,000 square feet of automated glass greenhouses with P.L. high-end horticultural lighting. The Alliance Growers’ greenhouses will be capable of producing over 300,000 grams per week or 15,600 kilograms per year of dried CBD cannabis.

Lineage Grow Company

Lineage Grow Company has listed its common shares, and expects to begin trading effectively on Monday, March 5th, under the symbol “BUDD”. As a major shareholder in the company as well as a strategic partner with projects in Washington, Nutritional High is pleased to see Lineage Grow Company achieve this major corporate milestone.

The Hydropothecary Corporation recently signed a letter of intent to supply its home province of Quebec with 20,000 kilograms of cannabis products in the first year of legalization. That is the largest supply agreement announced in Canada to date, and the company says it is just the beginning. “This supply arrangement is an important step for Hydropothecary,” said CEO Sébastien St-Louis in a press release announcing the deal. “We are honoured by the opportunity to supply cannabis in our home province and we want Quebecers to know that we are committed to providing safe and high-quality products for the adult-use recreational market.”

Emerald Health Therapeutics, Inc.

Emerald Health (EMHTF) and Village Farms International, Inc. (VFFIF) today announced that Health Canada has issued a Cultivation Licence for their co-owned Delta 3 greenhouse operation under Canada’s Access to Cannabis for Medical Purposes Regulations. This optimally-designed 1.1 million ft² cannabis growing facility is located in one of the best growing climates in Canada in Delta, BC, and is conservatively projected to produce 75,000 kg of quality cannabis annually at full production.

William SumnerFebruary 16, 2018

Cannabis Wheaton Income Corp. (CBW) announced today that it had entered into a joint venture with Peter Quiring, one of the largest greenhouse builders and operators in Canada, to build a brand new cannabis greenhouse facility in Leamington, Ontario. The joint venture will operate through a newly formed subsidiary dubbed GreenhouseCo. Quiring will act as Chief Executive Officer of GreenhouseCo.

With over 25 years of experience building and operating greenhouses, Quiring has developed over 2,000 acres of greenhouses, operates approximately 175 acres of automated greenhouses, and operates one of the largest bell pepper and tomato greenhouses in North America.

“Today, I am pleased to announce my new exciting joint venture with Cannabis Wheaton and have full confidence in the management and teams that we have built together within my existing companies,” Quiring said in a statement. “I look forward to bringing my experience and values to this new partnership with Chuck, Hugo and their team at Cannabis Wheaton.”

“This is an exciting project both in terms of its scale and technological sophistication and we are honored to be partnering with the best in the business to ensure that this facility becomes one of the largest and best run greenhouse cultivation facilities in the country,” added Hugo Alves, President, and Director of Cannabis Wheaton.

For Phase 1 of the project, GreenhouseCo will initially develop 1.4 million square feet of a greenhouse on a 102-acre plot in Leamington, Ontario. The facility will be constructed by South Essex Fabricating on a site with access to approximately 27 megawatts of electricity and will be operated with a 100% closed-loop water recycling system.

Once Phase 1 is completed, the company estimates that the facility will produce approximately 120 million grams of cannabis per year. Combined with technological improvements adapted from Quiring’s existing greenhouses, the company believes that facility may be able to increase its output even more.

In addition to their current agreement, both Quiring and the company have agreed to jointly pursue international opportunities related to cannabis greenhouses, which includes greenhouse development and licensing GreenhouseCo’s intellectual property and operational expertise.

William SumnerJanuary 18, 2018

Canopy Growth Coporation (WEED), a diversified cannabis and hemp company based in Smith Falls, Ontario, today announced that it has entered into an agreement with a syndicate of underwriters led by GMP Securities L.P. (GMP) and BMO Capital Markets (BMLP) as joint bookrunners. The underwriters have agreed to purchase, on a bought deal basis, 5,060,000 common shares of the company, at a price of $34.60 per common share, for an estimated value of approximately $175,076,000.

The company has also agreed to grant the underwriters an over-allotment option to purchase up to an additional 759,000 common shares at the Offering Price. The option is exercisable in part or wholly at any time on the date of or prior to the 30 days following the closing of the offering. The offering is expected to close on Feb. 7, 2018.

This latest deal comes on the heels of a two year agreement between Canopy and the Canadian provincial government of Prince Edward Island, in which the company will provide the province with a minimum of one million grams of cannabis for at least the first year. Upon the third year, the deal may be renewed pending approval from both the company and the provincial government. The retail value of the deal has been estimated to be worth approximately $8 million – $12 million annually.

Cannabis Wheaton Income Corp. Closes Private Placement

Also posting big numbers today is Cannabis Wheaton Income Corp. (CBW), the self-proclaimed world’s first cannabis streaming company, which announced the closing of a previously announced $100 million private placement.

The funds were raised through the issuance of 100,000 Convertible Debenture Units at a price of $1,000 per Convertible Debenture Unit. The net proceeds from the deal will go towards funding working capital, administrative costs, financing of the company’s streaming partners, and other general corporate expenses.

MMCAP International Inc. SPC and Wheaton Income have agreed to a binding term sheet in regards to the offering where MMCAP will agree to subscribe up to $48 million aggregate principal amount of convertible debenture units.

A more detailed description of the terms in the offering can be found here.

Debra BorchardtOctober 5, 2017

Cannabis Wheaton Income Corp. and Beleave Inc. (OTCQX: BLEVF) announced that they have signed an agreement where Cannabis Wheaton will provide Beleave with up to $10 million in debt financing. The debt obligation will be known as a D.O.P.E. Note or debt obligation repayable in product equivalents. The proceeds will be used by Beleave to pay for the construction of an expansion of the company’s current facility outside of Hamilton, Ontario.

“Everyone at Beleave is thrilled to embark on this new partnership, and we expect it will yield outstanding results for all sides. It was a truly enjoyable experience working with an incredibly diligent and forward-thinking team at Cannabis Wheaton on this transaction,” said Bojan Krasic, Chief Financial Officer of Beleave.

Under the terms of the note, Cannabis Wheaton will advance Beleave $5 million and then provide another $5 million for up to two years from the closing date. Beleave will repay the note by giving Cannabis Wheaton a portion of the gross proceeds received from the retail or wholesale sale of cannabis produced at any of its cultivation facilities. This translates into roughly proceeds from the sale of 1,275,125 grams of cannabis. According to the statement, “The Note is repaid in full, the proceeds from 85% of all Grams sold by Beleave will be delivered to CW as payment against the outstanding principal of the D.O.P.E. Note. If the D.O.P.E. Note is not repaid in full prior to the Maturity Date, any principal amount outstanding at such time will be automatically increased by 10% and the Maturity Date will be extended by 6 months.”

The Cannabis Wheaton team is constantly looking for creative solutions to provide additional value to our streaming partners and we view the D.O.P.E. Note as another tool for the company to utilize in furtherance of that goal. It was a pleasure working with the incredible group of industry professionals who form the Beleave team to develop this industry-first D.O.P.E. Note,” said Chuck Rifici, Chief Executive Officer of Cannabis Wheaton. “We view this transaction as the first milestone towards a long working relationship as we move forward to the larger, previously announced streaming transaction with Beleave to finance the build-out of a third proposed production facility and add further scale to the Beleave platform. We fundamentally believe this transaction is accretive to both our shareholders as well as Beleave’s shareholders and it will result in a true win-win.”

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Cannabis Wheaton Archives - Green Market Report

Marijuana Money May 25, 2018