Cannabis Wheaton Income Corp. announced this week that it had entered into a strategic alliance agreement with research and development company Honest Inc., which is doing business as Province Brands of Canada. Under this strategic deal, Cannabis Wheaton will assist Province in establishing and licensing a new cannabis facility that will focus on the research and development, and on the commercialization of cannabis-based drinks.
Pursuant to the Agreement, Cannabis Wheaton will help the Ontario-based Province Brands obtain the Federal license it needs in order to engage in the cannabis-based beverage business. These cannabis beverages are targeted to provide the market with a safer and healthier alternative to alcohol.
In exchange for its assistance, Cannabis Wheaton will receive 2,068,284 preferred shares in Honest Inc. capital. This represents a 10 per cent equity ownership interest in Honest Inc. on a fully diluted basis. To further their strategic alliance, Cannabis Wheaton is going to issue 303,030 common shares to Province.
Moreover, the deal will last for at least three years and will subsequently be automatically renewed for one-year periods unless mutually terminated by both companies.
The companies will also explore and collaborate on commercial opportunities such as marijuana genetics development and refinement, supply and offtake arrangements, co-branding opportunities, IP development and licensing, white-label opportunities, and international distribution opportunities.
Cannabis Wheaton President Hugo Alves said their industry and regulatory expertise, coupled with Province Brand’s accomplished team, makes their alliance a “winning combination.” Both companies will be working together to develop unique formulations and consumer products that will play a big role in the cannabis industry and will “disrupt the alcohol industry.”
“We are looking forward to the partnership with Province Brands and to helping the company build an industry-leading international brand in the cannabis-based beverage sphere.”
According to Province Brands Co-Founder and CEO Dooma Wendschuh, the deal with Cannabis Wheaton signals a giant leap forward for Province Brands in its mission to offer consumers a safer and healthier substitute for alcohol.
The agreement is still subject to certain conditions precedent, which include applicable regulatory approvals, as well as of the green light from the TSX Venture Exchange.
Other Cannabis Wheaton deals in the past month
This is not the first time this month that Cannabis Wheaton signed a deal with another company. On March 1, it announced that it signed a definitive agreement with Sundial Growers for $7-million in debt financing.
Sundial is an Alberta-based Health Canada ACMPR-approved cannabis producer that combines innovative horticultural techniques and tried-and-true heartland farming in the cultivation of select cannabis strains.
Meanwhile, on March 5, the company announced that it had closed a definitive agreement with FV Pharma Inc. Pursuant to the deal, Cannabis Wheaton will finance and develop FV Pharma’s cannabis facility in exchange for 49.9 percent stream of all cannabis and cannabis products from the said facility.
FV Pharma is a Whitby-based company that develops and produces pharmaceutical-grade cannabis products.
In February, Cannabis Wheaton signed a new joint venture with Peter Quiring, which is one of the largest greenhouse builders and operators in Canada. Under their deal, the two companies will develop, construct, and operate a 1.4-million sq. ft. state-of-the-art purpose-built cannabis greenhouse in Leamington, Ontario.
About Honest Inc. (d/b/a Province Brands)
Province Brands is a research and development company that is focused on developing and brewing alcohol-free beers. Province aims to become the first one to develop a premium range of adult beverages that have been brewed exclusively from cannabis, including alcohol-free and cannabis-powered beers and spirits.
About Cannabis Wheaton Income Corp.
Cannabis Wheaton is an investment and merchant company. It is also a collective of entrepreneurs from the cannabis industry. The company facilitates growth for its partners by sharing their collective industry experience and providing them the financial support they need.