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Marijuana Stocks Connect The Dots *Update*

 

We at Marijuana Stocks wanted to give an update to our Connect the Dots report we put out yesterday, but first we need to give you some very important information!

 

 


Click Here Now To Read Full Update on (KWFLF) (CBW.V)


 

Three More Canadian Marijuana Stocks You Should Know About

Canadian cannabis stocks continue to attract new investors, new institutional capital, and new strategic partners as legal recreational cannabis will help the industry see incremental growth for years to come.Although this week is a short week due to the Monday’s holiday, Canadian firms continue to report significant company developments and we want to highlight three stories that investors need to be aware of.

 


Click Here Now To Read Full Article


 

Tetra Bio-Pharma Inc. (TBPMF) Signs Definitive Agreement for Two Products

 

Tetra Bio-Pharma Inc. (“Tetra” or the “Company“) (CSE:TBP)(CSE:TBP.CN)(CNSX:TBP)(OTCQB:TBPMF), announced today it has signed a definitive agreement with Panag Pharma Inc. for the development and commercialization of novel cannabinoid based formulations for the treatment of pain and inflammation. Combined total market potential of both products in the USA in 2014 is estimated over US$5.5 billion. The recent press release on May 17th for the filing of a patent in ocular disease combined with the patents from Panag in the ocular space make this agreement very lucrative.

 

 


Click Here Now To Read Full PR on (TBPMF)


 

marijuana stocks

We at Marijuana Stocks wanted to give an update to our Connect the Dots report we put out yesterday, but first we need to give you some very important information!

Cannabis Wheaton (KWFLF) (CBW.V) has brought on syndicate agents including Canaccord Genuity Corp & Eight Capital to raise more than $50M CAD for their Cannabis Streaming business model. This raise will set the bar for other Canadian firms as it will represent one of the single largest capital raises in the history of the cannabis industry, that is not directly focused on cultivating. With this, Cannabis Wheaton is now heavily cashed up and one would hope that means management will begin aggressively working towards securing accretive deals that create value for shareholders and expand their overall reach.

First and foremost, we can only speculate what the company’s plans are with proceeds raised with regards to specific direct investment, but we expect to see the company use this capital to sign a new streaming partnership agreement with one of Canada’s major cultivators. We will continue to monitor the situation closely and provide updates as we get them. Now, let’s discuss what happened with trading on Tuesday, May 23, 2017.

In the pre-market hours, Cannabis Wheaton announced a private placement in the amount of $50,000,000 CAD which we referenced above as a truly a monster raise. Pending that news and at the company’s request, the Canadian exchange halted trading for the announcement of the news. FINRA then also issued a code U1 halt in the U.S. (that is NOT an SEC regulatory halt). This type of halt refers to a stock that is listed on a foreign exchange and gets halted by that exchange (in this case Canada) so FINRA must then also halt trading in the duel listing in the U.S.. This means no one could buy or sell shares of Wheaton until 3:15pm EST when the Canadian exchange and FINRA lifted the temporary halt and trading resumed.

The price of the stock adjusted for the financing news and opened for trade at $1.04 on the U.S. side. This is a nice discount compared to where the stock was trading prior to the news considering the stock had recently made a huge move on Monday after trading €4.9 million on the German exchange and $7.4 million CAD with Cannabis Wheaton (OTC KWFLF) (TSX CBW.V) gaining nearly 138% in the 3 days prior to the financing news. We expect the market to begin reflecting the opportunity for Cannabis Wheaton Corp. as their business model is cutting edge and their CEO Chuck Rifici has a proven record within the cannabis industry.


Pursuant to an agreement between MAPH and Cannabis Wheaton (KWFLF) we were hired for 30 Days to publicly disseminate information about (KWFLF) including on the Website and other media including Facebook and Twitter. We are being paid $150,000 (CASH) for and were paid “0” shares of restricted common shares of Cannabis Wheaton. We may buy or sell additional shares of (KWFLF) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information.

marijuana-stocks-canadian-cannabis

Canadian cannabis stocks continue to attract new investors, new institutional capital, and new strategic partners as legal recreational cannabis will help the industry see incremental growth for years to come.

Although this week is a short week due to the Monday’s holiday, Canadian firms continue to report significant company developments and we want to highlight three stories that investors need to be aware of. 

Tetra Enters Strategic Partnership and Changes its U.S. Symbol

Tetra Bio-Pharma (TBP.CN: CSE) (TBPMF) signed a definitive agreement with Panag Pharma for the development and commercialization of novel cannabinoid based formulations for the treatment of pain and inflammation. This partnership combined with the company’s patent filing last week could make this a profitable relationship. Tetra is focused on generating revenue in 2017 by launching retail products via its partnership with Panag.

Under the agreement, Tetra will have the exclusive right to sell the ocular and topical drug products in North America with right of first negotiation for international markets. Tetra will also have a right of first negotiation for future cannabinoid-based products.

Tetra will work with Panag’s team to ensure a rapid and successful process leading to marketing authorization. Panag will continue to develop new novel products for unmet medical need and Tetra will focus on commercializing these products.

Panag has developed potential new cannabinoid-based therapies for ocular and topical anti-inflammatory and pain markets. The company also developed a cannabinoid topical drug product for the local treatment of pain and inflammation.

Tetra also issued a corporate update and highlighted the following:

  • Changed its U.S. OTCQB symbol to TBPMF
  • Issued 501,800 new shares as part as of a service agreement from June 20, 2016.
  • Issued 250,000 new shares as part of a service agreement with MAPH Enterprises to broaden U.S. investor awareness.

 Canadian Biotech Firm to Raise $5+ Million

InMed Pharmaceuticals (IN.CN: CSE) (IMLFF) entered an underwriting agreement with a syndicate of underwriters led by Canaccord Genuity and includes Eight Capital along with Roth Capital Partners (placement agent). The underwriters agreed to purchase, on an underwritten basis, 11,120,000 units at $0.45 each for $5 million in aggregate gross proceeds.

InMed plans to use the proceeds for the following reasons: 1) To support the continued research and development of INM-750 for the treatment of Epidermolysis Bullosa, 2) To further develop the company’s other research and development programs including its biosynthesis assets, 3) For general and administrative expenses, and 4) To fund working capital.

Each unit is comprised of one common share and one-half share purchase warrant. The warrant has an exercise price of $0.65 and will be exercisable for a period of 24 months following the closing date. The offering is expected to close by May 30th. InMed granted the underwriters the option to purchase up to 1,668,000 additional units at $0.45 each for a period of up to 30 days after the closing date. If this option is exercised in full, the company will generate $5.75 million in aggregate gross proceeds.

Marapharm Looks to Enter Nevada’s Recreational Market

Yesterday, Marapharm Ventures (MDM: CSE) (MRPHF) took a significant step forward in its plans to take advantage of the Nevada recreational cannabis market. Marapharm acquired two fully equipped buildings that meet Nevada’s state licensing requirements and the company must move quick if they want to take advantage of this huge opportunity.

Marapharm’s buildings were inspected and given pre-approval for cultivation and processing. If the company can be approved before May 31st and conduct a taxable transaction, it will be allowed to apply for licensing under the state’s recreational program.

Nevada’s department of taxation is currently accepting applications for recreational cultivation, production, lab and retail store licenses, from existing Nevada marijuana establishments that hold valid registration certificates.

Marapharm has 300,000 square feet of medical marijuana licenses for its land and facilities in Washington state and Nevada. About three years ago, Marapharm applied in Canada to Health Canada and the application is currently in the in-depth screening process. In September, Health Canada contacted Marapharm with a provision to amend its application to allow for the new regulations, ACMPR.

We are on the sidelines but think this is a story and a stock investors should keep an eye on!

 

Author: Michael Berger

 


 

Disclaimer: Pursuant to an agreement between MAPH and InMedPharmaceuticals., we were hired for a period beginning February 24 2017 and ending April 24, 2017 to publicly disseminate information about (IMLFF) including on the Website and other media including Facebook and Twitter. We are being paid $40,000 (CASH) for and were paid “250,000” shares of restricted common shares of InMed Pharmaceuticals.We may buy or sell additional shares of (IMLFF) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information. Pursuant to an agreement between MAPH and Tetra Bio-Pharma, we were hired for a period of 90 days to publicly disseminate information about (TBPMF) including on the Website and other media including Facebook and Twitter. We are being paid $75,000 (CASH) for and were paid 250,000 restricted common shares of Tetra Bio-Pharma. We may buy or sell additional shares of (TBPMF) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information.

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Tetra Bio-Pharma Signs Definitive Agreement for Two Products with Panag Pharma

Tetra Bio-Pharma Inc. (“Tetra” or the “Company“) (CSE:TBP)(CSE:TBP.CN)(CNSX:TBP)(OTCQB:TBPMF), announced today it has signed a definitive agreement with Panag Pharma Inc. for the development and commercialization of novel cannabinoid based formulations for the treatment of pain and inflammation. Combined total market potential of both products in the USA in 2014 is estimated over US$5.5 billion. The recent press release on May 17th for the filing of a patent in ocular disease combined with the patents from Panag in the ocular space make this agreement very lucrative.

Per the definitive agreement, Tetra will have exclusive access to sell the ocular and topical drug products in North America with right of first negotiation for outside U.S. and Canadian territories. In addition, Tetra will have a right of first negotiation for future cannabinoid-based products.

Tetra will work in close collaboration with Panag’s team of experts to ensure a rapid and successful development leading to marketing authorization. Panag will continue work in the development of novel products for unmet medical need and Tetra will take the lead in commercializing these novel drug products.

“We are very pleased to announce this partnership with Panag as we work towards building an innovative product pipeline focused on cannabis,” said Andre Rancourt, CEO of Tetra Bio-Pharma. “Tetra is committed to generating revenues in 2017 by launching several products in the retail market through its partnership with Panag.”

Panag has developed potential new cannabinoid-based therapies for ocular and topical anti-inflammatory and pain markets. The total ocular anti-inflammatory market was estimated at over $3 billion in the USA in 2014 and includes conditions such as post-op inflammation, allergic conjunctivitis and inflammatory dry eye. Panag also developed a cannabinoid topical drug product for the local treatment of pain and inflammation. In 2014, the over the counter sales of topical analgesics were estimated at over $2.5 billion according to IMS.

“We will prioritize the development of the ocular therapy as this is a promising innovative product with high medical need and a significant potential financial reward,” said Guy Chamberland, Chief Scientific Officer of Tetra Bio-Pharma. Tetra has positioned itself to become a leader in topical pain relief.

Corporate Update:

Tetra changed today at the opening of the U.S. markets its OTCQB stock symbol to TBPMF.

The Company issued 501,800 new shares as part as of a service agreement as previously announced in a news release on June 20, 2016.

The Company issued an additional 250,000 new shares as part of a service agreement with MAPH Enterprises, LLC, effective May 8, 2017 to broaden U.S. investor awareness.

About Panag Pharma:

Panag Pharma Inc. is a Canadian based bio-tech company focused on the development of novel cannabinoid based formulations for the treatment of pain and inflammation. Panag believes that pain relief should be safe, non-addictive and above all; effective. The Panag Pharma team of PhD scientists and medical doctors are among the world’s leading researchers and clinicians in the area of pain treatment and management. They bring a combined experience of over 100 years in research and clinical care of people dealing with chronic pain and inflammatory conditions. Panag’s current pipeline of pain relief products include formulations for the topical application to the skin, the eye and other mucous membranes. Recently approved by Health Canada and currently undergoing clinical trials, Panag Pharma’s Topical AOTC provides a new approach to the treatment of chronic pain and inflammation.

About Tetra Bio-Pharma:

Tetra Bio Pharma is a multi subsidiary publicly traded company (CSE:TBP)(CSE:TBP.CN)(CNSX:TBP)(OTCQB:TBPMF) engaged in the development of Bio Pharmaceuticals and Natural Health Products containing Cannabis and other medicinal plant based elements.

Tetra Bio Pharma is focused on combining the traditional methods of medicinal cannabis use with the supporting scientific validation and safety data required for inclusion into the existing bio pharma industry by regulators physicians and insurance companies. More information is available about the company at: www.tetrabiopharma.com.

The Canadian Securities Exchange (“CSE”) has not reviewed this news release and does not accept responsibility for its adequacy or accuracy.

Forward-looking statements

Some statements in this release may contain forward-looking information. All statements, other than of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements regarding potential acquisitions and financings) are forward-looking statements. Forward-looking statements are generally identifiable by use of the words “may”, “will”, “should”, “continue”, “expect”, “anticipate”, “estimate”, “believe”, “intend”, “plan” or “project” or the negative of these words or other variations on these words or comparable terminology. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond the Company’s ability to control or predict, that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things, without limitation, the inability of the Company, through its wholly-owned subsidiary, GrowPros MMP Inc., to obtain a licence for the production of medical marijuana; failure to obtain sufficient financing to execute the Company’s business plan; competition; regulation and anticipated and unanticipated costs and delays, and other risks disclosed in the Company’s public disclosure record on file with the relevant securities regulatory authorities. Although the Company has attempted to identify important factors that could cause actual results or events to differ materially from those described in forward-looking statements, there may be other factors that cause results or events not to be as anticipated, estimated or intended. Readers should not place undue reliance on forward-looking statements. The forward-looking statements included in this news release are made as of the date of this news release and the Company does not undertake an obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise unless required by applicable securities legislation.

Source: Tetra Bio-Pharma Inc.

CONTACT INFORMATION

  • Tetra Bio-Pharma Inc.
    Edward Miller
    Vice President, IR & Corporate Communications
    (514) 360-8040 Ext. 203
    edward@tetrabiopharma.com
    www.tetrabiopharma.com

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As the hatred towards legalizing marijuana continues grows for U.S. Attorney General Jeff Sessions he has repeatedly hinted at a possible crackdown against states that have approved recreational or medical marijuana sales, different members of Congress have introduced bills directed at improving the way the federal government deals with marijuana, including its designation as a Schedule I narcotic by the Drug Enforcement Administration. But there’s disagreement among national leaders of the cannabis community about whether it would be preferable to shift marijuana to Schedule II or Schedule III or to de-schedule it entirely.

HR 714, backed by Representative H. Morgan Griffith, a Virginia Republican, and introduced in January, would move marijuana from Schedule I, which falls into the same category as heroin and recognizes no medical advantages, to Schedule II alongside cocaine, opium and other substances that can be used medically. Another Griffith bill, HR 715, calls for medical marijuana to be switched from Schedule I to different DEA classification, but doesn’t give the specifics on which one. And in April, Representative Matt Gaetz, a Republican from Florida, put forward HR 2020, which would place marijuana in Schedule III, where assorted stimulants (e.g., Benzphetamine), depressants (Amobarbital) and products such as Tylenol with Codeine are listed.

How Can (NORML) Further Help De-Schedule Marijuana

Still, these legislative efforts fall short in the view of Justin Strekal, political director for the National Organization for the Reform of Marijuana Laws (NORML)

“NORML is committed to a de-schedule effort,”Strekal says. “The growing acceptance of marijuana reform and the growing consensus that we inevitably need to take cannabis out of Schedule I is demonstrated by the introduction of these bills, but quite frankly, we don’t think they go far enough. We want it to be regulated in a similar manner to alcohol.”

“We have a growing momentum in Congress, with the formation of the Congressional Cannabis Caucus,” a coalition that includes Colorado representatives Ed Perlmutter and Jared Polis, Strekal points out. He adds: “At the end of the day, we’ve already seen eight states legalize adult use, and we expect that number to grow significantly in the coming years. It’s time for the federal government to get out of the way.”

Mason Tvert, the Colorado-based spokesperson for the Marijuana Policy Project, has a similar feeling about de-scheduling.

“We believe that marijuana should be removed entirely from drug schedules, because it’s less harmful than alcohol and other products that are not included in the schedules,” Tvert says.

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MassRoots Provides Shareholder Update on Strategic Initiatives and Upcoming Events

During the first quarter of 2017, the Company achieved cash-flow positive status, with a net cash inflow of $1.8M, and retired all outstanding convertible debt. Additionally, the exercise of warrants resulted in a significant reduction in the Company’s derivative liabilities. MassRoots also formed a strategic relationship through an investment in the cannabis media powerhouse, High Times.

“We’re pleased with the significant improvement in the Company’s fundamentals we experienced during the first quarter,” stated MassRoots CEO Mr. Isaac Dietrich. “Our core objective for the balance of the year is continuing to better monetize our user-base and deliver more value to our clients.”

Apart from improvements to its financial position, MassRoots crossed one million registered users in March 2017, making it one of the largest online communities of cannabis enthusiasts. Shortly after reaching this milestone, the Company announced the launch of its celebrity influencer program to help accelerate MassRoots’ user-growth towards 2 million users and formed a strategic partnership with Whoopi & Maya, co-founded by the legendary Whoopi Goldberg.

Additionally, MassRoots announced data-oriented partnerships with notable cannabis technology companies, New Frontier Data and Grownetics, and could provide some of the most advanced analytics and reporting available in the cannabis industry.  The Company launched a web browser-based version of its popular application in March. Throughout the coming weeks, MassRoots plans to launch an updated and rebranded version of its mobile application for both Android and iOS devices. This app update will be the result of significant investment of resources during the first quarter in improving MassRoots’ infrastructure to support an increasing number of users and paying down technical debt.

“We thank our shareholders for their continued trust in MassRoots as we continue to execute on our strategic business objectives,” concluded Mr. Dietrich. “We look forward to sharing some exciting developments and reporting back on our progress over the coming weeks.”

For more information, please refer to the Company’s Quarterly Report on Form 10-Q, as amended, for the quarter ended March 31, 2017, filed with the U.S. Securities and Exchange Commission on May 22, 2017 www.sec.gov.

About MassRoots
MassRoots is one of the largest technology platforms for the regulated cannabis industry. The Company’s mobile apps enable consumers to make educated cannabis purchasing decisions through community-driven reviews. MassRoots is proud to be affiliated with the leading businesses and organizations in the cannabis industry, including the ArcView Group and National Cannabis Industry Association. For more information, please visit MassRoots.com/Investors.

Forward-looking Statements
Certain matters discussed in this announcement contain statements, estimates and projections about the growth of MassRoots’ business, potential partnerships, new features, and related business strategy. Such statements, estimates and projections may constitute forward-looking statements within the meaning of the federal securities laws. Factors or events that could cause our actual results to differ may emerge from time to time. MassRoots undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The recipient of this information is cautioned not to place undue reliance on forward-looking statements.

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marijuana-stocks-cannabis-texas

A bill can be killed in various ways especially ones dealing with legalizing marijuana for example obstruction, feet dragging, amendments, procedural snags or getting talked to death in a filibuster, just to give a few. In the case of Texas’ medical marijuana and decriminalization bills, even though each bill had enough support to pass, they never even came up for a vote before time ran out last Thursday night at midnight.

What Happened To The Bills On Marijuana Reform

A midnight deadline passed without the full House even taking up proposed House Bill 81 for consideration on marijuana reform. The bill would have essentially decriminalized the possession of small quantities of marijuana, lessening penalties to below that of most traffic tickets.

House Bill 2017, which would have legalized medical marijuana, met the same fate due to the House’s jam-packed calendar.
So now, both bills are dead in the water as stand-alone legislation.

However, the fact that they got as far as they did is historic for the marijuana industry in the state of texas and marijuana culture. Having made it out of committee, these two bills advanced further than any other high-profile marijuana-related bill in Texas by simply making it on to the calendar in the full House of Representatives.

State Reps. Joe Moody and Jason Isaac, lead sponsors of HB 81, had warned earlier in the week that it was unlikely the House would get to the decriminalization bill by the midnight deadline.

The legislators said they planned to look for ways in the final two weeks of the legislative session to resurrect it, such as by tacking it on as an amendment to another bill.

We can only hope the do because the next opportunity to pass this any type of bill dealing marijuana legislation won’t be until 2019—when the Texas legislature meets again.

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FBEC Worldwide, Inc. Launches Newly Re-Formulated & Re-Branded Healthy Hemp Energy Shot, For Sale Now

CEO Jeff Greene stated, “Our current and prospective shareholders and customers can now go online and order our new product. We have been hard at work developing our brand that we are very pleased & proud it to bring to market. We invite everyone to log on to http://HealthyHempEnergy.com and buy our new and greatly improved Healthy Hemp Energy Shot.”

About FBEC Worldwide, Inc.

FBEC Worldwide, Inc. is a lifestyle Brand Company with a focus on Healthy Hemp Energy & CBD infused consumer products, both domestic and abroad. We are committed to increasing our market size and scope through the optics of creative marketing and most importantly customer satisfaction. Our growth strategies focus on several major initiatives, including unique branding opportunities that will be targeted at key demographic groups and to develop strong community and distributor relationships.

FBEC Worldwide is currently developing and building Healthy Hemp & CBD infused consumer products, focused on strong rates of growth within key fundamental consumer groups. Our company is dedicated to becoming the lead developer of name brand hemp & CBD infused consumer products.

Website: http://HealthyHempEnergy.com
Facebook: https://www.facebook.com/healthyhempenergy/
Twitter: https://twitter.com/hh2energy

Safe Harbor for Forward-Looking Statements: This news release includes forward-looking statements. While these statements are made to convey to the public the company’s progress, business opportunities and growth prospects, readers are cautioned that such forward-looking statements represent management’s opinion. Whereas management believes such representations to be true and accurate based on information and data available to the company at this time, actual results may differ materially from those described. The Company’s operations and business prospects are always subject to risk and uncertainties. Important factors that may cause actual results to differ are and will be set forth in the company’s periodic filings with the U.S. Securities and Exchange Commission.

Investor Relations Contact:

IR@HealthyHempEnergy.com

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marijuana-stocks-cannabis-wheaton

Mr. Chuck Rifici reports

CANNABIS WHEATON ANNOUNCES PRIVATE PLACEMENT OF SPECIAL WARRANTS AND CONVERTIBLE DEBENTURE UNITS

Cannabis Wheaton Income Corp. (KWFLF) (CBW.V) has engaged a syndicate of agents co-led by Eight Capital and Canaccord Genuity Corp. to sell, on a best efforts, private placement basis, special warrants and convertible debenture units (as described below) of the company, for gross proceeds of up to $50-million.

The Company has agreed to grant the Agents an over-allotment option to offer up to that number of additional Special Warrants and/or Convertible Debenture Units as is equal to 15% of the number sold in the Offering, on the same terms and conditions as the Offering, increasing the size of the Offering to a maximum of $57,500,000 in aggregate gross proceeds. The over-allotment option may be exercised in whole or in part on or before 48 hours prior to the closing of the Offering, which is expected to occur on or about June 21, 2017 (the “Closing Date”).

The net proceeds from the Offering will primarily be used for general corporate purposes, including but not limited to, the financing of the Company’s streaming partners pursuant to certain of the Company’s streaming agreements, and for general and administrative expenses.

The Offering will consist of “Special Warrants” and “Convertible Debenture Units” as follows.

Special Warrants

Each Special Warrant will be offered at a price of $1.15 per Special Warrant for gross proceeds of up to $25,000,000 (the “Special Warrant Offering”). Each Special Warrant will be automatically exercised (without any further action by the holder or payment of any further consideration and subject to customary anti-dilution adjustments) into one Unit (as defined below) of the Company on the date (the “Automatic Exercise Date”) that is the earlier of: (i) the date that is three business days following the date on which the Company obtains a receipt from the applicable Canadian securities regulatory authorities (the “Securities Commissions”) for a (final) short form prospectus qualifying the distribution of the Units issuable upon exercise of the Special Warrants (the “Qualifying Prospectus”), and (ii) the date that is four months and one day after the Closing Date. Each Unit will consist of one common share (each a “Common Share”) and one common share purchase warrant of the Company (a “Warrant”). Each Warrant will (subject to acceleration and customary anti-dilution adjustments) entitle the holder thereof to purchase one Common Share, at any time on or prior to the date that is 24 months following the Closing Date, at an exercise price of $1.60 per share. The Company will use its commercially reasonable efforts to obtain a receipt from the Securities Commissions for the Qualifying Prospectus before the date that is four months and one day following the Closing Date; provided, however, that there is no assurance that a Qualifying Prospectus will be filed or that a receipt therefor will be issued by the Securities Commissions prior to the expiry of the statutory four month hold period.

Convertible Debenture Units

Each Convertible Debenture Unit will be offered at a price of $1,000 per Convertible Debenture Unit for gross proceeds of up to $25,000,000. Each Convertible Debenture Unit will consist of $1,000 principal amount of 6% senior unsecured convertible debentures (the “Convertible Debentures”) and 435 Common Share purchase warrants (the “CD Warrants”) of the Company. Each CD Warrant (subject to acceleration and customary anti-dilution adjustments) will be exercisable to acquire one Common Share at an exercise price of $1.60 per share for a period of 24 months following the Closing Date. Subject to the Company filing a Qualifying Prospectus (as described above), the Convertible Debentures, the CD Warrants and the Common Shares will be subject to the statutory four month hold period.

The Convertible Debentures will bear interest from the Closing Date at 6.0% per annum, calculated semi-annually in arrears on June 30 and December 31 of each year. The first interest payment will be made on June 30, 2018 and will consist of interest accrued from and including the Closing Date to June 30, 2018. The Convertible Debentures will mature on the date that is 24 months from the Closing Date (the “Maturity Date”).

The Convertible Debentures will be convertible into Common Shares at the option of the holder at any time prior to the close of business on the last business day immediately preceding the Maturity Date at a conversion price of $1.15 per Common Share (the “Conversion Price”), subject to adjustment in certain events. Holders converting their Convertible Debentures will receive accrued and unpaid interest thereon for the period from and including the date of the latest interest payment date to, but excluding, the date of conversion.

Beginning on the date that is four months and one day following the Closing Date, the Company may force the conversion of the principal amount of the then outstanding Convertible Debentures at the Conversion Price on not less than 30 days’ notice should the daily volume weighted average trading price of the Company’s Common Shares be greater than $2.30 for any 10 consecutive trading days on the TSX Venture Exchange (the “TSX-V”), or such other exchange as the Common Shares may then be trading (the “Trigger Event”). In addition, upon the occurrence of the Trigger Event, the Company may also accelerate the expiry date of the Warrants and CD Warrants on not less than 30 days’ notice.

Subject to a number of customary closing conditions (including the Company completing the Special Warrant Offering), the Company is pleased to announce that MMCAP International Inc. SPC (the “Lead Subscriber”) intends to subscribe for up to $20,000,000 aggregate principal amount of the Convertible Debenture Units.

Closing Conditions and Related Matters

The Offering is subject to a number of customary closing conditions, including TSX-V approval, negotiation of definitive closing documents, due diligence and the absence of a material adverse change.

As part of the Offering, directors, officers, and certain other shareholders, together representing approximately 55% of the issued and outstanding Common Shares on a fully diluted basis (prior to giving effect to the Offering), have agreed to enter into lock-up agreements in favour of the Agents restricting their ability to transfer their Common Shares and other securities of the Company convertible into Common Shares (collectively, the “Lock-Up Securities”) until the date that is 12 months following the Closing Date, provided that: (i) one-third of the Lock-Up Securities shall cease to be subject to the lock-up on the date that is 6 months and one day following the Closing Date; and (ii) a further one-third of the Lock-Up Securities shall cease to be subject to the lock-up on the date that is 9 months and one day following the Closing Date.

Representatives of the Co-Lead Agents hold an aggregate of 13,139,859 common shares and 13,139,859 common share purchase warrants of the Company, representing approximately 8.0% of the issued and outstanding common shares on a basic basis (8.5% of the outstanding common shares on a fully-diluted basis) as at the date hereof.

The Company also announces that it has filed an amended and restated annual information form containing additional disclosure relating to its updated investment strategy in the cannabis industry.

We seek Safe Harbor.

marijuana stocks

A Revolutionary Cannabis Investment?

Some of the greatest investment minds in the world say, “You invest in management.” And since the birth of MarijuanaStocks.com, few management personnel have shined brighter than Cannabis Wheaton Income Corp. CEO Chuck Rifici. Mr. Rifici has accomplished with Cannabis Wheaton something that no other cannabis industry CEO has. The business model he has implemented is something that we feel every marijuana investor MUST know about. Cannabis Wheaton (KWFLF)(CBW.V) provides a very unique opportunity for marijuana investors by greatly reducing risk while still maintaining tremendous upside potential.

But before we explain the Cannabis Wheaton business model and why we feel EVERY investor should know about it, let’s first take a look at Chuck Rifici. Because as we said earlier, “you invest in management.” And there may not be a more recognizable managerial figure who has done more for the marijuana industry than Mr. Rifici.

Invest in Management

Chuck Rifici is responsible for co-founding and taking public the largest full-scale producer of government-sanctioned marijuana as its CEO in April 2014; a company by the name of Tweed Inc. whose name later changed to Canopy Growth Corp. (TWMJF)(WEED.TO). To this day, Canopy Growth remains the largest public cannabis company with a staggering market cap of approximately $1Billion. In 2016, WEED hit $17.86 approximately 550% higher than the IPO price. It is widely agreed to be the most successful marijuana company to go public and is seen as the benchmark and leader of the industry.

Take a look at how WEED stock has performed over the last 2 years:

marijuana stocks

When considering an investment in any company, it’s important to look at the management team. Who is leading the ship? Is this their first rodeo? Or have they already proven successful in bringing a company to market that has built shareholder value? Well, Chuck Rifici’s track record with co-founding Tweed speaks for itself and gives Cannabis Wheaton shareholders confidence that they have a marijuana industry trailblazer leading their ship.

But Rifici’s resume is filled with much more than just Tweed. In 2011, Rifici was appointed CFO of the Liberal Party of Canada by interim party leader Bob Rae. In 2014, Rifici was also named to the Top Forty under 40 by Ottawa Business Journal, named Alumnus of the Year by the University of Ottawa Faculty of Engineering, and received the Exceptional New Business Award by the Ottawa Chamber of Commerce.

Rifici also sat on the Board of marijuana starlets Supreme Pharmaceuticals (SPRWF) (SL.CN), Aurora Cannabis (ACBFF) (ACB.V), and CannaRoyalty (CNNRF) (CRZ.V). These board positions helped Rifici keep his ear to the ground, expand his network, and gain insight to the marijuana industry in both Canada and the U.S. He actually just resigned from his Supreme Pharma and Aurora Cannabis Board seats because of a slight conflict of interest but mostly to focus all of his time and energy towards building Cannabis Wheaton into a revolutionary cannabis company.

Cannabis Wheaton’s Streaming Model—Revolutionizing Cannabis Investment

Cannabis Wheaton is the first company to bring a streaming business model to the marijuana industry. This unique model can greatly reduce risk for investors while maintaining tremendous upside potential from a booming industry. Streaming business models are normally found in the mining industry and refer to when a company strikes a deal with a miner to purchase all or part of its future metal production in exchange for upfront cash. Perhaps the most notable example is silver giant Silver Wheaton (NYSE: SLW). This works well because mining is a very cash intensive business and requires a lot of upfront capital. And the cannabis industry is about to undergo a massive expansion that will be an serious capital burden on current marijuana producers.

Rifici has said that the marijuana industry must increase total production by 10 times the current rate in order to keep pace with the increased demand for marijuana once the drug is legalized for recreational use. Producers are barely keeping up with cannabis demand from just medical marijuana users, never mind when legal recreational use goes into effect.

Currently, there is only 1.4 million square feet of licensed medical marijuana production facilities in Canada. According to Rifici, 14 million square feet is needed to satisfy the upcoming demand. Such a massive expansion is a major financial burden and carries great risk for companies trying to expand so much so quickly. And that is where the opportunity lies for Cannabis Wheaton.

“We’re going to see tremendous growth in the industry…There have been a lot of announced expansions that fill maybe a third of that gap. But there’s still 6 or 7 million square feet that needs to be built out,” said the Rifici.

Under the streaming model, Cannabis Wheaton will provide marijuana producers with the necessary capital to expand their operations in exchange for a minority equity stake in the company and a portion of their future production at an agreed upon discounted price. The company will also provide their partners with guidance and expertise on facility construction, cultivation, and the licensing process. Rifici has brought to Wheaton several of the early key members of Tweed including the top cannabis legal team in Canada that has helped half a dozen Licensed Producers (LPs) obtain their licenses.

Cannabis Wheaton has already signed 16 streaming deals with 14 partners across 6 different provinces of Canada. Their partners’ credentials include:

  • 2 sales licenses.
  • 3 cultivation licenses.
  • 4 affirmation letters.
  • 5 advanced pre-affirmation stage applicants.

Through these agreements, Cannabis Wheaton already has access to 1.3 million square feet of cultivation by 2019, 30,000 registered medical marijuana patients, and nearly 40 medical cannabis clinics.

One agreement we feel worth mentioning specifically is the company’s deal with Broken Coast Cannabis Ltd., a British Columbia based medical cannabis producer that has established itself as a top provider of high grade cannabis products. Broken Coast’s clean tech production methods and systems deliver consistent premium cannabis. The company was also recently awarded one of the few 18-month Access to Cannabis for Medical Purposes Regulation (ACMPR) licenses, which is a testament to its compliance record.

Broken Coast and its entities will utilize the experience and capital of Cannabis Wheaton to accelerate expansion and scale production in a short period of time. Under the terms of the agreement between the companies, Broken Coast will source a proposed site to complement their current site. The parties expect the new location to accommodate at least 100,000 square foot state-of-the-art cannabis cultivation facility.

Broken Coast will operate the new facility in accordance with its industry best practices and the two companies will share the proceeds with Cannabis Wheaton receiving 49% of the product output.

5 Reasons to Consider Cannabis Wheaton

  1. Licensed Producer Diversification- Because the company is working with such a wide range of cannabis cultivation companies and receiving both an equity stake in those companies and a percentage of the end product, shareholder risk is spread out amongst several companies rather than just one.
  2. Exposure to Tremendous Upside- Usually, reducing risk results in reduced potential reward, too. But not in this case. Even with the reduced risk, shareholders are exposed to the explosive industry expansion that Rifici explained as being a 10x expansion. Current cannabis revenue numbers in Canada will pale in comparison to what we see once legal recreational use goes in effect. Cannabis Wheaton will hold an equity stake in many producers as well as owning portions of the end product at a discounted price.
  3. Geographic Diversification- Cannabis Wheaton has signed agreements with partners across 6 different provinces in Canada. This brings exposure to several different markets and acts almost as a loophole for the company to take advantage of a few question marks the industry has regarding distribution.
  4. Proven Business Model- The streaming business model has already been proven successful for some of the largest metal miners in the world. Silver Wheaton, a streaming company with a market cap of approximately $10Billion, went to this model because they generally have a bullish outlook on the price of silver. So, it makes sense for them to fund a miner’s drilling operations and expansion to purchase the future metal output at a steep discount. Similarly, Rifici and Cannabis Wheaton have a bullish outlook on the production rate and revenue numbers for marijuana in Canada expecting a 10x expansion of the industry. So, it makes sense to help fund the expansion in return for equity ownership and a portion of the end product.
  5. Successful Management- The team behind Cannabis Wheaton has already taken the largest producer of government-sanctioned marijuana public. And it was and remains the most successful IPO in the cannabis space and true leader of the industry. 

Conclusion

Ever since Rifici co-founded Tweed and brought the cannabis juggernaut public in 2014, investors wondered what his next project would be. Rifici said he is proud of what he built with Tweed but was ready to put the past behind him.

“I’m essentially moving on to what I think are far better opportunities in the space,” said the Cannabis Wheaton CEO.

It’s hard to imagine what opportunities could be more successful than a $1Billion market cap, top marijuana producing, cannabis leader that gained 550% from its IPO. But if anyone knows an opportunity in the marijuana space when they see one it’s Chuck Rifici.

Licensed Producers are already having trouble keeping up with demand from about only 130,000 registered medical marijuana patients. When legal recreational use goes into effect, demand is going to skyrocket. The current 1.4 million square feet of cultivation facility space simply isn’t going to cut it. Not even close. The entire industry is racing to undergo a massive expansion that will see cultivation space increase by about 10 times. That type of expansion is extremely costly and carries great risk for individual producers.

However, with their streaming business model, Cannabis Wheaton is de-risking the expansion while still giving investors exposure to the booming industry growth. With 16 agreements already inked with 14 different partners across 6 different provinces, Cannabis Wheaton could very well be revolutionizing the way investors capitalize on the cannabis industry.

 


Disclaimer: Pursuant to an agreement between MAPH and Cannabis Wheaton (KWFLF) we were hired for 30 Days to publicly disseminate information about (KWFLF) including on the Website and other media including Facebook and Twitter. We are being paid $150,000 (CASH) for and were paid “0” shares of restricted common shares of Cannabis Wheaton. We may buy or sell additional shares of (KWFLF) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information.

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