CannaRoyalty (CSE:CRZ) (CSE:CRZ.CN) (CNSX:CRZ) (OTCQX: $CNNRF) forms CR Advisory Services and Secures its First Engagement with Alternative Medical Enterprises
OTTAWA, ONTARIO - July 10, 2017 (Investorideas.com Newswire) CannaRoyalty Corp. (CSE:CRZ)(CSE:CRZ.CN)(CNSX:CRZ)(OTCQX:CNNRF) ("CannaRoyalty" or the "Company"), a fully integrated, active investor and operator in the legal cannabis industry is pleased to announce that its newly formed CR Advisory Services Inc. ("CR Advisory") division has secured its first engagement with one of its investee companies Alternative Medical Enterprises, LLC ("AltMed").
Following the successful launch of its CR Brands division, and in order to support its recently announced joint venture with Sprott Inc. ("Sprott"), CR Advisory has been established to provide consulting and advisory services to the global cannabis industry.
Marc Lustig, CEO of CannaRoyalty stated, "The challenges faced by cannabis companies in this nascent and highly-regulated industry are considerable, and CR Advisory provides these companies with the expertise required to realize significant and sustainable growth, and also achieve critical strategic corporate milestones. CannaRoyalty's business relationship with AltMed is an excellent example of the strong relationships we have fostered with our investees through a multitude of platforms to assist in developing them into industry leaders, while generating significant returns for CannaRoyalty shareholders."
CR Advisory will be providing a full suite of advisory services within the areas of corporate finance, capital markets, compliance and regulation, accounting, operations, as well as retail and sales strategy. In addition, marketing and branding services will be provided through CannaRoyalty's wholly-owned marketing and design agency, Electric Medialand. CR Advisory will initially be providing these services to its current investees, such as AltMed. Following the launch of its joint venture with Sprott, CR Advisory will also focus on providing strategic support in sourcing and driving the growth of joint venture funded companies. CR Advisory may look to ultimately provide its services to non-investee companies operating within the global cannabis industry.
Advisory Services Agreement with AltMed
Terms of the CR Advisory engagement with AltMed include an upfront work fee of US$150,000, plus a success fee on corporate transactions undertaken by AltMed during the consulting services agreement (the "Agreement") or within six months after termination of the Agreement. CannaRoyalty currently holds a 8.2% equity stake in AltMed, a 3.5% revenue royalty extending to December 31, 2025 on a number of its MüV products, as well as the right to license MüV products in Canada, Puerto Rico and certain US states. This engagement expands CannaRoyalty's financial exposure to AltMed, while also providing CannaRoyalty with an improved ability to support and accelerate AltMed's growth, through CR Advisory. For more information on AltMed, go to www.altmed.co.
"We are pleased to have the support and guidance of CannaRoyalty through its CR Advisory division as we prepare to launch a significant corporate transaction for AltMed," said Mike Smullen, CEO of Altmed. "We have enjoyed a strong working relationship with CannaRoyalty over the life of our company and are confident we will successfully advance our expansion and development with their help."
CannaRoyalty is also pleased to announce that it has engaged the services of Stoic Advisory Inc. ("Stoic") to assist CR Advisory and with other CannaRoyalty initiatives. Stoic was founded in 2016 by cannabis industry expert Aaron Salz, and has quickly become a highly reputable consulting firm focused on providing strategic corporate finance advisory services and transactional support to companies within the global cannabis industry. As consideration for these services, Stoic has been issued CannaRoyalty common shares effective the date hereof, which are subject to customary hold periods.
CannaRoyalty is a fully integrated, active investor and operator in the legal cannabis sector. Our focus is building and supporting a diversified portfolio of growth-ready assets in high-value segments of the cannabis sector, including research, consumer brands, devices and intellectual property. Our management team combines a hands-on understanding of the cannabis industry with seasoned financial know-how, assembling a platform of holdings via royalty agreements, equity interests, secured convertible debt, licensing agreements and its own branded portfolio.
Forward Looking Statements
Statements in this news release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed here and elsewhere in CannaRoyalty's periodic filings with Canadian securities regulators. When used in this news release, words such as "will, could, plan, estimate, expect, intend, may, potential, believe, should," and similar expressions, are forward- looking statements.
Forward-looking statements may include, without limitation, statements including the Company's expectations with respect to pursuing new opportunities and its future growth and other statements of fact.
Although CannaRoyalty has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in the forward-looking statements, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended, including, but not limited to: dependence on obtaining regulatory approvals; investing in target companies or projects which have limited or no operating history and are engaged in activities currently considered illegal under US Federal Laws; changes in laws; limited operating history; reliance on management; requirements for additional financing; competition; hindering market growth and state adoption due to inconsistent public opinion and perception of the medical-use and adult-use marijuana industry and; regulatory or political change.
There can be no assurance that such information will prove to be accurate or that management's expectations or estimates of future developments, circumstances or results will materialize. As a result of these risks and uncertainties, the results or events predicted in these forward-looking statements may differ materially from actual results or events.
Accordingly, readers should not place undue reliance on forward-looking statements. The forward-looking statements in this news release are made as of the date of this release. CannaRoyalty disclaims any intention or obligation to update or revise such information, except as required by applicable law, and CannaRoyalty does not assume any liability for disclosure relating to any other company mentioned herein.
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