Cannabis Wheaton Announces Closing of Robinson's Cannabis Acquisition


VANCOUVER, British Columbia, May 11, 2018 (GLOBE NEWSWIRE) -- Cannabis Wheaton Income Corp. (TSX.V:CBW) (the "Company") is pleased to announce that it has closed its previously announced acquisition (the "Transaction") of its streaming partner Robinson's Cannabis Inc. ("Robinson's"), acquiring all of the issued and outstanding shares of Robinson's.

Robinson's, formerly Cannahort Agriculture Inc. and an original streaming partner of the Company, is a privately-owned, late-stage licensed producer applicant under the Access to Cannabis for Medical Purposes Regulations (the "ACMPR") located in Kentville, Nova Scotia that is currently constructing a 27,700 square foot purpose-built cannabis cultivation facility.
  
Pursuant to a share purchase agreement dated April 6, 2018, the Company has acquired all of the issued and outstanding shares of Robinson's for an aggregate purchase price of $14,000,000, issued to the shareholders of Robinson's as an aggregate of 9,395,968 common shares in the capital of the Company. As a result of the Transaction, Robinson's is now a wholly-owned subsidiary of the Company. 

Hugo Alves, President and Director of Cannabis Wheaton commented, “I could not be happier to announce the closing of the Robinson's acquisition.  This transaction strengthens our commitment to Atlantic Canada and deepens the roots that we're establishing there.  Andrew and his team are exceptionally talented, passionate professionals who are committed to the craft of growing ultra-premium cannabis and we believe that his cannabis flower will be highly sought after among cannabis connoisseurs across the country.  In addition, the Robinson's purpose-built facility is located in Kentville, Nova Scotia, a short drive from our Dosecann facility in Charlottetown, PEI, where we intend to work with Andrew and his team to develop derivative products which highlight the quality of Robinson's cannabis and cater to cannabis consumers who demand and enjoy the very best.”

Andrew Robinson, President and Master Grower of Robinson's stated, "The Robinson’s Cannabis team could not be more excited about the announcement of our partnership. We’ve developed a terrific relationship with Chuck, Hugo and the rest of the team over that past year. There are so many invaluable benefits to having Wheaton as a partner but more than anything it is the energy, talent, and passion for cannabis of the Wheaton team that are a compliment and natural fit for the Robinson’s team and our ambitions.  We want to share our distinct product with the world and to become a global brand, the Wheaton team and platform are best equipped to help accomplish our goal."

For further details on the Transaction, see the Company's press release dated April 9, 2018 available on SEDAR at www.sedar.com.

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:
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Notice Regarding Forward Looking Information:

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 proposed licensing of Robinson's facility and the expected timing to obtain all necessary licenses required for the proposed operation of the facility, political change; future legislative and regulatory developments involving cannabis; competition and other risks affecting the Company in particular and the cannabis industry generally. By identifying such information and statements in this manner, the Company is alerting the reader that such information and statements are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company or, following completion of the Transaction, Robinson's, to be materially different from those expressed or implied by such information and statements.

A number of factors could cause actual results to differ materially from a conclusion, forecast or projection contained in the forward-looking information in this release including, but not limited to, whether: Robinson's is able to obtain and maintain a cultivation license; the Company is able to successfully manage the integration of Robinson's operations with its own; the Robinson's facility can be completed in the manner currently proposed or at all; Robinson's can obtain all necessary governmental and regulatory permits and approvals for the facility, and whether such permits and approvals can be obtained in a timely manner; the counterparties to the Share Purchase Agreement and related transaction agreements comply with their respective obligations under the Share Purchase Agreement and related transaction agreements; and general economic, financial market, regulatory and political conditions in which the Company and Robinson's operate will remain the same. Additional risk factors are disclosed in the revised annual information form of the Company for the financial year ended December 31, 2016 dated May 23, 2017.

New factors emerge from time to time, and it is not possible for management to predict all of those factors or to assess in advance the impact of each such factor on the Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking information. The forward-looking information in this release is based on information currently available and what management believes are reasonable assumptions. Forward-looking information speaks only to such assumptions as of the date of this release. In addition, this release may contain forward-looking information attributed to third party industry sources, the accuracy of which has not been verified by the Company. The purpose of forward-looking information is to provide the reader with a description of management's expectations, and such forward-looking information may not be appropriate for any other purpose. Readers should not place undue reliance on forward-looking information contained in this release.

The forward-looking information contained in this release is expressly qualified by the foregoing cautionary statements and is made as of the date of this release. Except as may be required by applicable securities laws, the Company does not undertake any obligation to publicly update or revise any forward-looking information to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.

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.