Cannabis Wheaton Income Corp. (TSX VENTURE: $CBW.V) Enhances Strategic Flexibility With Acquisition of Licensed Producer RockGarden Medicinals
VANCOUVER, BC - November 1, 2017 (Investorideas.com Newswire) Cannabis Wheaton Income Corp. (d/b/a Wheaton Income) (TSX VENTURE: CBW)("Cannabis Wheaton" or the "Company") is pleased to announce the closing of the acquisition (the "Acquisition") of all of the issued and outstanding shares of RockGarden Medicinals (2014) Inc. ("RockGarden") pursuant to the terms of a definitive share purchase agreement (the "Share Purchase Agreement") dated October 31, 2017 (the "Closing Date").
The Acquisition furthers the Company's streaming platform strategy by providing the Company additional resources and regulatory tools to help accelerate Wheaton Licensing Program participants' pathway to licensing under the Access to Cannabis for Medical Purposes Regulations (the "ACMPR").
Located in Carleton Place, Ontario, RockGarden is a privately owned licensed producer of cannabis pursuant to the ACMPR. On August 25, 2017 RockGarden was granted a cultivation license (the "License").
Like Marijuana Stocks? View our Marijuana / Hemp Stocks Directory
Join our Group on Linkedin - Marijuana / Hemp Stocks - News and Trends in Green Investing
Hugo Alves, President of Wheaton Income commented, "When we set the strategy for Wheaton Income it was about building a dynamic platform that promoted sustainable growth for both the industry and our shareholders. The acquisition of RockGarden will act as a strategic tool to help us with on-going partnerships and opportunities, but most importantly the development and execution of our existing and prospective streaming relationships."
Chuck Rifici, Chief Executive Officer of Wheaton Income stated, "I couldn't be happier to work with RockGarden -- whom I and the entire Wheaton Income team believe has tremendous pedigree well suited to succeed in a legal regulated environment. As much as this is a strategic acquisition, it is also a cultural acquisition for us. We pride ourselves on building valuable, ethical and long-standing relationships within the industry and are excited to welcome the incredible RockGarden team to the Wheaton Income family. It's a winning combination as the industry moves forward and becomes continually more competitive. This acquisition represents another way that the Wheaton Income platform drives Growth by Diversity."
"RockGarden management and shareholders are thrilled to join the Wheaton family. Cannabis Wheaton's all-star team has both industry-leading experience and financial acumen which are key requirements to becoming a national leader in the cannabis industry. We are proud to be an important part of that success," stated Deborah Hanscom, Chief Executive Officer of RockGarden.
Vlad Klacar, Associate General Counsel and the primary mentor to the Wheaton Licensing Program said, "In addition to acquiring an excellent facility and a fantastic team, the RockGarden acquisition provides the Wheaton Licensing Program with a regulatory tool that will accelerate the development of our Wheaton Licensing Program participants and provide an expedited pathway for incredible entrepreneurs to participate in the regulated cannabis industry. Stay tuned for more news on this front in the coming weeks."
In connection with the Acquisition, the shareholders of RockGarden are entitled to receive aggregate consideration of 27,499,912 common shares in the capital of the Company ("Common Shares"), issued to the shareholders of RockGarden (the "RG Shareholders") as follows:
i.17,499,970 Common Shares upon closing of the Acquisition;
ii.4,999,971 Common Shares issued and held in escrow to be released to the RG Shareholders upon RockGarden receiving a sales authorization under the License; and
iii.4,999,971 issued and held in escrow to be released upon certain key employees satisfying certain performance obligations set out in the Share Purchase Agreement.
All Common Shares are subject to a statutory hold period expiring on 4 months and 1 day from the date of issuance. In addition, certain officers, directors and insiders of RockGarden have agreed to enter into lock-up agreements in favour of the Company restricting their ability to transfer their Common Shares (the "Locked-up Securities") until the date that is 12 months following the Closing Date, provided that: (i) one-fourth of the Locked-Up Securities shall cease to be subject to the lock-up on the date that is 4 months and one day following the Closing Date; and (ii) a further one-fourth of the Locked-Up Securities shall cease to be subject to the lock-up on the date that is 6 months and one day following the Closing Date; (iii) a further one-fourth of the Locked-Up Securities shall cease to be subject to the lock-up on the date that is 9 months and one day following the Closing Date.
Stoic Advisory Inc. acted as financial advisor to RockGarden in the completion of the Acquisition.
ON BEHALF OF THE BOARD
"Chuck Rifici" Chairman & CEO
About Wheaton Income. (TSX VENTURE: 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 Wheaton Income and our management team, please visit: http://www.cannabiswheaton.com, or follow us on Twitter @WheatonIncome. Call: 1.604.687.7130 Email: Mario@skanderbegcapital.com (http://www.skanderbegcapital.com).
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 RockGarden's ability to satisfy the conditions associated with its License, the RockGarden'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
VP External Affairs
This news is published on the Investorideas.com Newswire - a global digital news source for investors and business leaders
Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investment involves risk and possible loss of investment. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Contact each company directly regarding content and press release questions. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release on the Investorideas.com newswire https://www.investorideas.com/News-Upload/
Additional info regarding BC Residents and global Investors: Effective September 15 2008 - all BC investors should review all OTC and Pink sheet listed companies for adherence in new disclosure filings and filing appropriate documents with Sedar. Read for more info: https://www.bcsc.bc.ca/release.aspx?id=6894. Global investors must adhere to regulations of each country.