Back at the end of May, Chuck Rifici-led Cannabis Wheaton Income Corp (CBW.V) announced it had signed a definitive subscription agreement where Cannabis Wheaton agreed to purchase $15.0 million of ABcann Medicinal’s (ABCN.V) common shares at $2.25 per share.
Cannabis Wheaton made good on that commitment today when the company announced it had purchased its first subscription of the afore-mentioned investment.
According to the news release, Cannabis Wheaton’s first subscription is expected to close by July 31, 2017, subject to customary closing conditions, including regulatory approval from the TSX Venture Exchange.
Funds from Cannabis Wheaton’s investment will be directed toward the construction of ABcann’s proposed marijuana grow op in Napanee, Ontario, known as the Kimmett facility.
The Kimmett facility is planned to take up 71,000 square feet and produce 20,000 kilograms annually. ABcann intends to commence construction as soon as possible.
The company hopes to capture the medical marijuana market with plants grown in an exclusive, computer-controlled environmental system.
Each grow chamber is customizable and scalable with proprietary lighting so whether ABcann is growing Alaskan Thunder Grape or Maui Waui, they can maintain optimum environmental conditions for each crop.
With hermetically sealed cultivation pods, ABcann intends to deliver what Organigram failed to do – a wide variety of top quality cannabis grown with organic fertilizers and soil media.
Nice, no pesticides or hydrogen cyanide in your medicine. (Thanks, Organigram)
Automation of environmental controls is expected to not only produce consistent, pesticide-free product, but reduce production costs.
The Kimmett facility will act as ABcann’s flagship as it expands into the rapidly expanding Canadian medical marijuana market.
As such, Cannabis Wheaton went elbows-deep in ABcann with this investment and CEO, Chuck Rifici, is more than happy about the relationship, “We are delighted to be partnering with ABcann and its first-class management team in the buildout of the Kimmett facility and expansion of ABcann’s cultivation footprint. ABcann is an important strategic partner for Cannabis Wheaton and enhances the overall strength of our platform.”
Aaron Keay, ABcann CEO, added, “We are pleased to move forward with the initial funding phase of our partnership with Cannabis Wheaton and to welcome them as new equity holders in ABcann. This represents Cannabis Wheaton’s first funding allocation, and we look forward to this mutually beneficial relationship as we advance both of our respective companies.”
This is a positive move for Cannabis Wheaton, which opened its doors to tremendous fanfare due to Chuck Rifici’s involvement, but also fell into controversy over a failed $80.0 million-dollar financing with VII Capital which revealed the ugly underbelly of Pre-IPO insider involvement and its periodic complete disregard for the retail investor.
As the ABcann deal comes to profitable fruition over the next 12 months, Cannabis Wheaton’s optics will improve along with its shareholder value and soon no one will care how CBW came to be.
You can learn more about ABcann Medicinals here.
FULL DISCLOSURE: ABcann Medicinals is an EQUITY.GURU client.