VANCOUVER, British Columbia, Dec. 18, 2017 (GLOBE NEWSWIRE) — Cannabis Wheaton Income Corp. (d/b/a Wheaton Income) (TSX.V:CBW) (“Wheaton Income” or the “Company“) is pleased to announce that it has entered into a binding strategic alliance and streaming agreement (the “Agreement”) with Sustainable Growth Strategic Capital Corp. (“SGSC“) whereby SGSC, via a subsidiary, will become a significant streaming partner to the Company, and the newest participant in the Wheaton Licensing Program.
Pursuant to the Agreement, the Company will assist SGSC in obtaining ACMPR licensing (the “License”) for its large energy-efficient facility strategically located in Scarborough, Ontario (the “Facility”) which, upon receipt of the License, will make it one of the closest licensed producers to Toronto’s downtown core. The Company will also assist SGSC in developing the Facility which SGSC anticipates will be approximately 145,000 square feet upon completion with the capacity for a further 200,000 square foot expansion.
SGSC consists of a seasoned management team with over 100 years of combined experience in delivering on large-scale power generation and construction projects. As a result, the Facility will provide several competitive advantages to both SGSC and the Company as SGSC has created strategic partnerships with both a qualified engineering, procurement and construction contractor to provide lower cost renewable and natural gas solutions and a co-development waste energy partner to provide all necessary capital expenditures. As a result, SGSC expects to yield over $6 million in energy savings for Phase I of Facility construction.
The Company will not be providing any capital to SGSC for the construction of its Facility but will assist SGSC in obtaining it’s ACMPR licensing through its Wheaton Licensing Program by providing SGSC with all of the resources and expertise necessary to achieve the License. As consideration for its efforts the Company will receive a perpetual stream of 30% of all of the cannabis cultivated at the Facility (the “CBW Allocation”). The Company estimates that the CBW Allocation will result in approximately 5,500,000 grams of cannabis for the Company’s benefit per annum once the Facility is fully built out.
Hugo Alves, President of Wheaton Income, stated, “The partnership with SGSC is a great addition to the Cannabis Wheaton family and platform. The team at SGSC are experienced entrepreneurs and are a perfect fit for the Wheaton Licensing Program. We believe this to be an accretive deal for both parties and it allows Wheaton to expand its product pipeline with no capital outlay as well as take on a platform partner that is located in a great strategic location.”
Jim Beatty, Chairman and Chief Executive Officer of SGSC, commented, “We are excited to announce this transaction and move this initiative forward. It has been a pleasure getting to know the Cannabis Wheaton team and the entire SGSC team is looking forward to working with them on the next chapter of our journey through to regulatory licensing. We believe the Wheaton team will continue to add value to our business and the Wheaton model will allow us to leapfrog early-stage competitors by leveraging their unique platform.”
ON BEHALF OF THE BOARD
“Chuck Rifici” Chairman & CEO
About Wheaton Income. (TSX.V:CBW)
Wheaton Income is a collective of entrepreneurs with a passion for the cannabis industry past, present and future. Our mandate is to facilitate growth for our partners by providing them with financial support and sharing our collective industry experience. Our partners all have different visions, voices and brand values, and all share a common goal—to build a world-class industry based on ethics, diversity, quality and innovation.
For more information about Cannabis Wheaton and our management team, please visit: http://www.wheatonincome.com, or follow us on Twitter @WheatonIncome. Call: 1.604.687.7130 Email: Mario@skanderbegcapital.com (http://www.skanderbegcapital.com).
Sarah Bain, VP External Affairs
Notice Regarding Forward Looking Statements:
This news release contains certain “forward-looking information” within the meaning of applicable Canadian securities law. Forward-looking information is frequently characterized by words such as “plan”, “continue”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “potential”, “proposed” and other similar words, or information that certain events or conditions “may” or “will” occur. This information is only a prediction. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking information throughout this news release. Forward-looking information includes, but is not limited to: the ability to consummate transactions which are currently in discussions, the Company’s ability to obtain the License, the Company’s ability to obtain a sales authorization for the License and the related timing considerations, the Company’s ability to generate revenue through the streaming agreements, requirements to obtain additional financing, timeliness of government approvals for granting of permits and licenses, including licenses to cultivate and sell cannabis, completion of the facilities, where applicable, actual operating performance of the facilities, regulatory or political change, competition and other risks affecting the Company in particular and the medical cannabis industry generally. Forward-looking information is based on the opinions and estimates of management at the date the information is made, and is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. The Company is not under any obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release