VANCOUVER, British Columbia, May 14, 2018 (GLOBE NEWSWIRE) -- Cannabis Wheaton Income Corp. (TSX-V:CBW) (“Cannabis Wheaton” or the “Company”) is pleased to announce that it has entered into a definitive licensing agreement (the “Agreement”) with Dixie Brands, Inc. ( “Dixie”) pursuant to which Cannabis Wheaton will have the exclusive license to Dixie’s intellectual property, product branding and formulation methodologies related to over 100 cannabinoid-infused products (the “Dixie IP”) in Canada and Mexico (the “Territory”).
Based in Denver, Colorado, Dixie specializes in developing intellectual property related to a variety of cannabinoid-infused products ranging from beverages to pet treat supplements. Since the founding of the brand in 2009 Dixie has emerged as a leader in the U.S. cannabis industry through its quality products and education and advocacy initiatives. The Dixie IP has been used by third-party licensees to produce some of the cannabis industry’s most innovative, safe, reliable and effective cannabis products, including premium cannabinoid-infused drinks, chocolate bars, mints, tinctures, balms and bath soaks.
Pursuant to the Agreement, Dixie granted the Company an exclusive licence to use the Dixie IP, including Dixie’s proprietary formulations and preparation methods as well as the associated trademarks, in the Territory for an initial term of 10 years (the “Term”). The Agreement provides Cannabis Wheaton with an option to renew the Term for up to two additional five-year periods. The Company plans to use its license for the Dixie IP to develop, manufacture, distribute and sell Dixie-branded products in Canada and Mexico, as and when those products are permitted to be sold pursuant to applicable laws.
Hugo Alves, President of Cannabis Wheaton stated, "I have personally known the Dixie team for many years and have the utmost confidence in their people and the high-quality products that they produce. Over the past five years I have watched Dixie amass an impressive intellectual property library and we believe that their proprietary formulations and products continue to separate them from their competitors. We are eager to learn from one of the best producers of cannabis-derived products in the world and this long-term partnership cements a long-standing relationship and evidences our commitment to ensuring product diversity within our platform and mitigating margin compression through the acquisition and development of value-add IP.”
Chuck Smith, CEO of Dixie, stated, “This is an exciting time for Dixie. For nearly a decade, our team has worked passionately to develop safe, consistent, and innovative products under a brand that consumers have come to know and trust. We have worked hard with our partners to build that brand responsibly in Colorado, California, Nevada and Maryland. Now, our partnership with Cannabis Wheaton will greatly broaden the reach of Dixie’s product portfolio as they begin distribution throughout Canada and Mexico. We look forward to continuing Dixie’s standard of excellence in our expansion efforts throughout North America.”
ON BEHALF OF THE BOARD
“Chuck Rifici” Chairman & CEO
About Cannabis Wheaton
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.
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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. All information contained herein that is not clearly historical in nature may constitute forward-looking information. 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 expressions intended to identify forward-looking information, or information that certain events or conditions "may" or "will" occur. The forward-looking information contained in this news release includes, but is not limited to: the anticipated benefits of the Agreement, the Company’s use of the Dixie IP to develop, manufacture, distribute and sell products in the Territory, legal developments permitting the sale of products produced using the Dixie IP in the Territory, the advantages of the Dixie IP relative to its competitors, our ability to ensure product diversity in our platform and mitigate margin compression and the ability to execute on our mandate.
Forward-looking information cannot be guaranteed. Forward-looking information by its nature is based on assumptions that are inherently subject to known and unknown risks, uncertainties and other factors which may cause the Company’s actual results, level of activity, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements and information. 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: the ability of the Company to use the Dixie IP to develop, manufacture, distribute and sell products; the market for the Company’s products, including products produced using the Dixie IP; regulatory developments, or delays of anticipated developments, affecting the Company or the industry in which the Company operates, including regulatory restrictions on the production, sale or marketing of cannabinoid-infused products; the development of the Canadian edibles market; the impact of the acquisition and development of value-add intellectual property on margin compression; and the ability of the Company to execute on its strategy and realize the anticipated benefits of the Agreement. Additional risks and uncertainties, as well as other information related to the Company, are discussed in the Company’s various public filings, including the Company’s Management Discussion and Analysis for the year ended December 31, 2017, available on SEDAR and can be accessed at www.sedar.com. 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.
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