VANCOUVER, British Columbia, March 15, 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 strategic alliance agreement (the "Agreement") with Ontario-based research and development firm Honest Inc. (d/b/a Province Brands of Canada) ("Province") whereby the Company will assist Province with the establishment and licensing of a cannabis facility focused on the research, development and commercialization of cannabis-based beverages.
Pursuant to the Agreement, and subject to applicable laws, the Company will assist Province in obtaining the Federal licensing necessary for Province to engage in the research, development and commercialization of cannabis-based beverages (the "License") through its Wheaton Licensing Program by providing Province with the resources and expertise necessary to achieve the License.
In connection with the strategic alliance, the Company will receive 2,068,284 preferred shares in the capital of Province, representing a 10% equity ownership interest in Province on a fully diluted basis, and to further the strategic alliance between the two companies, Cannabis Wheaton will issue 303,030 common shares to Province. The Agreement shall last for at least 3 years and shall automatically renew for 1-year periods unless otherwise mutually terminated by the Company and Province. The Company and Province have also agreed to explore and collaborate on further commercial opportunities including supply and offtake arrangements, cannabis genetics development and refinement, co-branding opportunities, white-label opportunities, IP development and licensing as well as international distribution opportunities.
Dooma Wendschuh, Co-Founder and CEO of Province, commented, "Today marks a giant leap forward for Province in our mission to create a safer and healthier alternative to alcohol. We are thrilled with the opportunity to partner with Chuck, Hugo and the rest of the Cannabis Wheaton team on this adventure, as Province aims to become the first company to develop a premium line of beverages brewed exclusively from the cannabis plant, as well as other premium cannabis-powered, alcohol-free beers and spirits. Here’s to a partnership which we hope will create tremendous value for Province and Cannabis Wheaton’s shareholders and create lots of phenomenal cannabis-based products for everyone else."
Hugo Alves, President of Cannabis Wheaton, stated, "We are very excited about this collaboration with Province. We believe that our regulatory and industry expertise, coupled with Province's accomplished team, will be a winning combination for both companies as we work to develop unique consumer products and formulations which we believe will eventually play a huge role in the cannabis industry and ultimately be disruptive to the alcohol industry. We look forward to partnering with Province and helping them build an industry-leading global brand in the cannabis beverage vertical."
The Agreement remains subject to certain conditions precedent, including receipt of applicable regulatory approvals and the approval of the TSX Venture Exchange.