Dooma Wendschuh Founders Update March 16, 2018
WE DID IT! As I'm sure many of you heard, we closed a historic deal with Wheaton Income this week. You can find the press release here if you haven't seen it yet. Before I talk about the importance of this deal, I want to especially thank my co-founder, Jennifer Thomas, and Krina Merchant from our legal team, without whose tireless work and many sleepless nights this deal would never have happened. We are in debt to both of you.
Now, what does this mean for Province? In a nutshell, it means that we are not the same company we were last week. It means everything changes for us. It means we will soon be a Licensed Producer. Without getting into too much detail, what it means is that Wheaton Income will apply for a second site marijuana license. This license will be for our facility. The second site marijuana license process is many times faster than the normal licensure process, and the outcome is essentially guaranteed.
Further, its not just any LP applying for the second site license. Cannabis Wheaton is run by Province advisor Hugo Alves and a team of former lawyers who ran the cannabis practice at Bennett Jones. Together they have been involved in dozens of licensing applications. No one in Canada - literally no one - understands how to get license applications pushed through more quickly than these folks. Once the second site license is approved, Province will have 99% ownership of the license and the business that applied for it (Wheaton will retain just ONE share). So it will be OUR license - a tremendously valuable asset for our company. LP's in Canada with no revenue typically sell for at least $15 million, often a lot more than that, so this is an incredibly valuable asset for the company. Most importantly, it's also a chance to work with a team we respect tremendously, and deepen our relationship with Wheaton Income, whom we believe will become one of the dominant players in Canada and globally in coming years. In exchange for the licensure services plus $500,000 worth of Wheaton stock, we sold the company a 10% stake in Province. This means they'll be with us for the long haul. I couldn't be more excited to have them as partners.
While Jennifer and Krina did most of the heavy lifting, nearly everyone on Team Province worked hard to make this happen. I want to also especially thank Caitlin and Ryan from our Productivity team who managed the Gantt Chart for the process and did their best to try to make the deal close on time. We are still awaiting TSX Approval for this transaction, so don't pop your champagne bottles just yet, but we can see no reason why the TSX would refuse to approve the deal.
On another note, we closed another deal this week (Please keep this confidential): We closed a deal with Trois Rivieres-based cellulose processing facility, Innofibre, to act as a CRO and help us further refine and develop our brewing process. Dr. Erin Johnson, Amal Bhandari, and I visited Innofibre this past week, and we were absolutely blown away by their STATE-OF-THE-ART $80 Million dollar facility. It had every piece of equipment we could possibly want for creating the wort we need to brew our beer. Touring their facility was literally one of the most amazing work experiences I've had. Here are some images of our tour of the cutting edge facility.
I am extemely excited to begin what I hope will be a long and fruitful relationship with Innofibre. We also have to thank the new head of our Product Team, Dr. Erin Johnson for finding Innofibre and for closing our deal with them. I think this is the start of something amazing.
This has been a fantastic week for Province, and I couldn't be more proud of all that our team has been able to achieve. Great work everyone!