VANCOUVER, British Columbia, March 05, 2018 (GLOBE NEWSWIRE) -- Cannabis Wheaton Income Corp. (TSX.V:CBW) ("Cannabis Wheaton" or the "Company") is pleased to announce that further to its previously announced letter of intent, it has entered into a binding definitive agreement (the "Agreement") with its streaming partner FV Pharma Inc. ("FV Pharma" or “FV”) to develop all aspects of FV's cannabis cultivation facility in mutually agreed staged phases (the “Facility Development”), with the potential to build out the largest indoor cannabis cultivation facility in the world.
The FV Pharma state-of-the-art facility (the “Facility”), hosts an existing 620,000 square feet of building space and is famously known as the former KRAFT® food manufacturing facility. The Facility is ideally situated only one hour east of Toronto in Cobourg, Ontario, off of the 401 highway and has access by car or rail to Ottawa and Montreal.
Pursuant to the Agreement, the Company will receive a 49.9% stream of all cannabis (or cannabis-derived products including any immature cannabis plants and any cannabis trim) produced at the Facility, under partnership with Cannabis Wheaton, in perpetuity (the “Cannabis Wheaton Allocation”). The Company estimates that the Cannabis Wheaton Allocation will result in approximately 200,000,000 grams of cannabis for the Company’s benefit per annum upon completion of all phases of the Facility Development.
In exchange for the Cannabis Wheaton Allocation, using its unique expertise and experience the Company’s management team will assist FV Pharma with all aspects of the design, development, financing, build-out and operations of the Facility as well as the marketing, branding and distribution of all cannabis and cannabis-derived products generated by the Facility.
In addition, the Company will also participate in the governance of FV Pharma by having one Company nominee appointed to the board of directors of FV Pharma.
Chuck Rifici, Chairman and Chief Executive Officer of Cannabis Wheaton commented, "As a cornerstone asset in the Cannabis Wheaton portfolio, we are excited to start this journey with the FV Pharma team to build-out a truly world class facility. As I previously mentioned, this project is special to us as it will not only create additional and much needed supply for the medical and recreational Canadian cannabis markets but also has the potential to create hundreds of jobs for the City of Cobourg."
Thomas Fairfull, President and CEO of FV Pharma said, “We couldn’t have asked for a better joint venture partner for the development of our world class facility and the execution of our business plan that we expect will create hundreds of quality skilled jobs for the City of Cobourg. We are excited at the opportunity to build and operate something special with Cannabis Wheaton and to set the gold standard for cannabis cultivation and for cannabis-derived consumer products.”
ON BEHALF OF THE BOARD
"Chuck Rifici" Chairman & CEO
About Cannabis Wheaton (TSX.V:CBW)
Cannabis Wheaton 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.
Investor Relations:
For more information about investing in Cannabis Wheaton, please visit: http://www.wheatonincome.com or contact our Investor Relations Team:
Email: IR@wheatonincome.com
Phone: 800.980.1314
Stay Connected:
Follow up on Twitter @WheatonIncome.
Media Enquiries (only):
For media enquiries or to set up an interview please contact:
Sarah Bain, VP External Affairs
Email: sarah@cannabiswheaton.com
Phone: 613.230.5869
About FV Pharma.
FV Pharma’s management mission is to make the former Kraft plant in Cobourg, Ontario the largest hydroponic cannabis indoor facility in the world. FV Pharma intends to target all aspects of the cannabis industry including cultivation, processing, manufacturing, R&D, concentrates, beverages and edibles when and only when it is legal to do so. The facility is only a one hour drive east of Toronto on the 401 highway. FV Pharma has an ACMPR License from Health Canada. FV Pharma is currently a private company.
Stay Connected:
For further information about FV Pharma Inc. and our management team, please visit: http://www.fvpharma.com or contact Thomas Fairfull ((905) 686-7079 or thomas@fvpharma.com) or Anthony Durkacz ((416) 720-4360 or anthony@firstrepubliccapital.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: regulatory or political change, expectations of future growing capacity at the Facility and the related costs, the completion of the planned build-out and expansions, requirements to obtain additional financing for such build-out and expansions, the ability to satisfy the conditions associated with the Facility’s cultivation license, the ability to obtain a sales authorization for the license and the related timing considerations, the Company’s ability to generate revenue through the Agreement, timeliness of government approvals for granting of permits and licenses, actual operating performance of the Facility, competition and other risks affecting the Company in particular and the 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 the Company nor FV Pharma is 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