ABcann Global Corporation
(TSX.V:ABCN)
(formerly Panda Capital Inc.)
(“ABcann”) and
Cannabis Wheaton
Income Corp. (TSX.V:CBW)
(
"Cannabis Wheaton" or "CW") are
pleased to report that they have entered into a binding interim
agreement (the “
Agreement”) to
fund the construction of 50,000 square feet of cultivation space
(the "
Expansion Production Area")
at ABcann’s proposed cannabis cultivation facility to be located in
Napanee, Ontario known as the Kimmett facility (the
"
Facility"). Pursuant to the
Agreement, Cannabis Wheaton has agreed to invest $30 million in
ABcann as follows:
- on the date that is the earlier of 10 days of the final closing
of CW's previously announced financing or by June 30, 2017, CW will
subscribe for $15 million of ABcann common shares (each, an
"ABcann Share") at an agreed upon
valuation of $2.25 per ABcann Share; and
- on the date that is the earlier of 10 days of CW raising an
aggregate of $150 million or March 31, 2018, CW will subscribe for
an additional $15 million at a price per ABcann Share equal to the
greater of two times the 10 day volume average trading price of the
ABcann Shares at the relevant time or $2.25.
Upon completion of the $30 million investment,
and upon accepting ABcann's construction budget and timeline for
the construction of the Expansion Production Area, Cannabis Wheaton
will provide all necessary funding to complete the construction of
the Expansion Production Area. This expansion will be in
addition to ABcann’s current 100,000 square foot facility that is
commencing construction imminently. In return, CW will receive 50%
of the proceeds (net of certain costs) of future wholesale or
retail sales completed by ABcann with respect to cannabis produced
in the Expansion Production Area (the "EPA
Allocation"). CW's entitlement to the EPA
Allocation will not begin until after the completion of CW's $30
million investment.
Chuck Rifici said "This now adds a sixth licence
to the Cannabis Wheaton portfolio, and our first publicly traded
producer with a sales licence. Over the past three years, I've
watched ABcann's involvement and evolution in the Canadian cannabis
industry. They are widely recognized for their proprietary
cultivation methods that produce high quality cannabis with
industry leading yields. It's clear to us that they had their pick
of funding sources, so it's an honour to make this announcement
today.
"This partnership will bring to ABcann the
support and funds necessary to break ground on the Kimmett site.
Once construction is complete, the additional cultivation space
will provide Cannabis Wheaton with an estimated 8,000,000 grams of
cannabis per year."
"This Partnership is a great opportunity for
both ABcann and Cannabis Wheaton. ABcann significantly
enhances its cash position through the equity investment, providing
ABcann with the capital to construct up to 180,000 square feet of
fully funded capacity," said Aaron Keay, CEO of ABcann.
The Agreement remains subject to certain
conditions precedent, including receipt by ABcann of applicable
Health Canada and other regulatory approvals and the ability of the
parties to agree on future construction budgets and timelines.
ON BEHALF OF THE BOARD
“Chuck Rifici”
Chairman & CEO
About ABcann Global
Corporation (TSX.V:ABCN)
ABcann was one of the first companies to obtain
a production license under the marijuana for medical purposes
regulations, which it received on March 21, 2014. It also obtained
a sales licence on Dec. 31, 2015. Situated in Napanee, Ont., ABcann
has spent the last two years focused on changing the face of
medical cannabis. ABcann intends to be the first company to have
repeatable products in multiple continents and to provide
standardized medical cannabis to the world. Its flagship facility
contains proprietary plant-growing technology, combining the
concepts, systems and components to produce high-yielding plants,
which, in turn, can generate high-quality products that are
consistent from batch to batch.
ABcann grows its plants in controlled
environmental chambers, where every key variable in the growing
process is optimized to achieve the consistency that is needed for
a standardized product. ABcann is able to control environmental and
nutrient demands, tailor-made for a particular strain of cannabis,
without the variation that is typical when producing large
quantities in less-controlled, larger rooms and greenhouse-type
structures, giving ABcann the ability to produce
pharmaceutical-grade, plant-based medicine that can be prescribed
with confidence.
Stay
ConnectedFor further information about ABcann
Global and our management team, please visit:
http://www.abcannglobal.com or contact Aaron Keay ((604)
323-6911 or aaron@abcannglobal.com) or Leo Karabelas ((416)
543-3120 or leo.k@abcannglobal.com).
About Cannabis Wheaton Income
Corp. (TSX.V:CBW)
Backed by a team of industry experts, Cannabis
Wheaton is the first cannabis streaming company in the world. Our
streams will include production from across Canada coming from our
partners comprised of licensed producers of cannabis (LP) and LP
applicants. Cannabis Wheaton's mandate is to facilitate real growth
for our streaming partners by providing them with financial support
and sharing our collective industry experience.
Stay
ConnectedFor more information about Cannabis
Wheaton and our management team, please
visit: http://www.cannabiswheaton.com, or follow us on Twitter
@CannabisWheaton. Call: 1-604 687 7130 Email:
Mario@skanderbegcapital.com http://www.skanderbegcapital.com.
Media: Natali Tofiloski(416)
655-1070natali@themintagency.com
Forward-Looking
Information
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 generate revenue through the streaming
agreements, the ability to consummate transactions which are
currently in discussions, requirements to obtain additional
financing, timeliness of government approvals for granting of
permits and licences, including licences to cultivate 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. Neither ABcann nor CW are 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.
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