VANCOUVER, British Columbia, Jan. 11, 2018 (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 letter of intent (the “Agreement”) with Level Ten Inc. (“Level Ten”), whereby Level Ten will become a strategic streaming partner to the Company.
Pursuant to the Agreement, the Company will assist Level Ten in obtaining a cultivation license pursuant to the Access to Cannabis for Medical Purposes Regulations (“ACMPR”) (the “License”) for its proposed state-of-the-art greenhouse cultivation facility to be located near Brantford, Ontario (the “Facility”). The initial foot print of the Facility will be approximately 278,000 sq. ft. upon completion (“Phase I”) with a planned expansion of 522,000 sq. ft. (“Phase II”).
The Company will assist Level Ten through the ACMPR licensing process by providing resources and regulatory expertise necessary to obtain the License on an expedited timeline. In addition, the Company will fund the construction costs for the development of Phase I pursuant to an agreed upon construction budget and timeline, currently estimated to be $35,000,000.
As consideration for providing the funding for Phase I and assisting with the licensing process, the Company will receive: (i) a 20% equity interest in the capital of Level Ten; and (ii) a perpetual stream of 30% of all cannabis and cannabis-derived products cultivated in Phase I of Facility (the “CBW Allocation”). The Company estimates that the CBW Allocation will result in approximately 8,100,000 grams of cannabis for the Company’s benefit per annum, once Phase I of the Facility is operating at full capacity.
Hugo Alves, President of Wheaton Income, stated, “I couldn’t be happier about our partnership with Level Ten. Mike and Chris McKee are some of the most talented greenhouse cultivators that we have ever encountered in the industry. Their meticulous approach to cultivation, data and process driven methodologies, and proprietary environmental control algorithms allow them to grow ultra-premium cannabis in a low-cost greenhouse environment on a consistent basis. We have been working hard to secure a greenhouse partner with significant large-scale cannabis cultivation experience and have been pursuing the Level Ten team as a strategic partner for a long time and are thrilled to welcome them to the Wheaton family. We can’t wait to see what comes out of their state-of-the-art facility.”
“We have known Hugo and the Wheaton team for quite some time and feel a powerful sense of alignment with their vision and approach to the industry. Their regulatory and financial expertise coupled with our cultivation and operating expertise will make for a truly winning combination. We’re very excited to be part of the Wheaton platform and can’t wait to get started doing what we love to do – growing trees,” commented Mike McKee, President of Level Ten.
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.