Cannabis Wheaton (TSX VENTURE: $CBW.V) Announces Strategic Alliance With Large Convenience Store Group
VANCOUVER, BC - October 16, 2017 (Investorideas.com Newswire) Cannabis Wheaton Income Corp. (TSX VENTURE: CBW) ("Cannabis Wheaton", "CW", or the "Company") is pleased to announce that it has entered an exclusive strategic alliance with the corporate owner of a national chain of convenience stores (the "Convenience Store Group") to develop and implement cannabis distribution and retail sale opportunities at all Convenience Store Group locations (collectively, the "Responsible Retailing Program").
The Convenience Store Group currently owns and operates over 350 convenience stores and convenience kiosks across Canada in high-traffic locations such as transit stations and commercial office buildings. Cannabis Wheaton believes that this distribution alliance is the first of its kind in Canada and allows the parties to collaborate and partner on cannabis distribution and retail sale opportunities including the active exploration of advanced age verification technologies to ensure the responsible retailing of cannabis at Convenience Store Group locations, if permitted by law (each, a "CS Location").
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The strategic alliance gives the Company the exclusive right for 10 years to: (i) work with the Convenience Store Group to develop and implement any physical or online distribution or sale of any form of cannabis, cannabis-infused or cannabis-derived products (collectively, "Cannabis Products") at any CS Locations; (ii) supply, or arrange for the supply of, all Cannabis Products to CS Locations for the distribution and/or sale of Cannabis Products, subject to applicable laws; (iii) develop consumer education best practices and guidelines in the retailing of Cannabis Products at CS Locations; and (iv) manage the display and/or advertising of Cannabis Products at CS Locations. All profits generated by the sale of Cannabis Products at CS Locations will be subject to a profit-sharing arrangement to be negotiated by the parties on a jurisdiction by jurisdiction basis if/when such distribution is legally permitted in such jurisdiction. In consideration for such exclusivity, Cannabis Wheaton will issue the Convenience Store Group warrants to purchase up to 1,000,000 common shares of the Company at an exercise price of $1.00 per common share for a period of 5 years.
Hugo Alves, President of Cannabis Wheaton commented, "This alliance is exciting for us and we look forward to working with a great group of experts who have a long history of handling regulated products such as tobacco and alcohol and have developed excellent age verification procedures to ensure that such products are only available to eligible purchasers. As evidenced by a recent study, convenience stores outperform the LCBO and The Beer Store when it comes to successfully implementing age verification procedures for age-restricted products. In order to bolster these already excellent protocols we intend to explore additional age verification technologies that can be implemented at eligible convenience store locations to ensure that the retail sale of cannabis is handled in a responsible fashion and in full compliance with regulatory requirements. We view this as an opportunity to work with one of the largest and most trusted distribution platforms in the country which provides trusted product access to remote locations across Canada."
Chuck Rifici, Chairman and CEO of Cannabis Wheaton, stated, "We continue moving towards our goal of ensuring that Cannabis Wheaton and its streaming partners have opportunities to participate in a wide variety of distribution and retail channels and we view this alliance as a step in the right direction. Convenience stores are a cornerstone in Canada and have vast experience dealing with governmental agencies, regulated products and consumers. With over 27,000 locations in Canada, convenience stores offer un-paralleled access for consumers and are well equipped to deal with age-restricted products, a category which recreational cannabis will fall squarely into. We are excited to add another strategic partner to our platform and work together to create advanced age verification technologies and explore distribution and retail opportunities for our streaming partners as we continue to grow through diversity."
ON BEHALF OF THE BOARD
Chairman & CEO
About Cannabis Wheaton Income Corp. (TSX VENTURE: 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.
For 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.
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: regulatory or political change, the ability to consummate transactions which are currently in discussions, the ability to generate revenue through the streaming agreements, requirements to obtain additional financing, timeliness of government approvals for granting of permits and licences, including licences to cultivate and sell cannabis, completion of the facilities, where applicable, actual operating performance of the facilities, 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. CW is under no 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.
VP External Affairs
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