Cannabis Wheaton, the World’s First Cannabis Streaming Company, Unveils Platform Partners

Cannabis Wheaton Income Corp., (TSX VENTURE: CBW) (“Cannabis Wheaton”, “CW”, or the “Company“) is pleased to introduce its 14 streaming partners and 16 sites across 6 provinces.

Streaming Partners

Chuck Rifici, Chairman and CEO of Cannabis Wheaton stated:

Cannabis Wheaton management and advisors have long had a strong presence in the industry. This has allowed us to engage with those who we believe are the medical cannabis leaders, as well as those we have identified as future leaders in a legalized cannabis environment.

“The company has assembled a critical mass of streaming partners at various stages ranging from sales license, cultivation license, affirmation letter holders and advanced pre-license companies which all will benefit from a symbiotic relationship with CW and with each other.

“As the number of component companies grow, the benefits grow within the system — that is the key to the critical mass that CW begins its life with — and that will allow it to scale further, increasing the value of the platform from the perspective of the Company and the underlying LPs and applicants, with every new partnership.

“By leveraging the collective experience of our team (See May 8, 2017 News Release) and our cross-country platform, we are enabling the next generation of LPs — LP 2.0. Cannabis Wheaton believes that this is a powerful model for the industry going into an adult recreational market and we are proud to be the only company of seasoned professionals from the cannabis space to have had such a strong validation from businesses spanning the spectrum of development and maturity. We will continue to profile our partners more specifically and extensively in the days and weeks ahead so that shareholders and stakeholders alike can learn more about the unique and dynamic companies in the CW family.

Streaming Partners

As previously disclosed, Cannabis Wheaton’s first cohort of streaming partners includes 14 outstanding companies in six provinces across Canada — including 2 sales license holders, 2 cultivation license holders, 4 affirmation letter holders and 6 advanced pre-affirmation stage applicants. This consists of licensed producers of cannabis (LPs) (pursuant to the Access to Cannabis for Medical Purposes Regulations (ACMPR)) and LP applicants. Collectively, our streaming agreements include future capacity of approximately 1,300,000 equivalent square feet of cannabis cultivation and production capacity net to Cannabis Wheaton by the end of 2019, according to industry recognized production averages.

Under each streaming agreement, upon the satisfaction of certain conditions precedent including having sufficient capital available for financing, performance of satisfactory due diligence and receipt by certain streaming partners of applicable regulatory approvals, Cannabis Wheaton will provide financing to the applicable streaming partner in consideration for: (i) the issuance of an equity interest in the streaming partner at an agreed-upon valuation; and (ii) an allocation of a portion of the streaming partner’s cannabis production yield at either a fixed price or a cost-plus price. The yield component will be for a defined period of time ranging from 10 to 99 years depending on the streaming partner.

Table of Partnerships, Estimated Future Production Net to CW At Full Capacity & CW Equity Ownership
Stream Name Province Licensing Stage Annual Expected Production for C/W (Kg) OWNERSHIP %1
2368523 Ontario Limited (Curative Cannabis) ON Pre-Affirmation 15,000 46%
Artiva Inc. ON Pre-Affirmation 17,800 16.70%
Broken Coast Cannabis Ltd. BC Sales License 15,000 10%, 49%2
Cannabco Pharmaceutical Corp. ON Pre-Affirmation 5,300 15.30%
Cannahort Agriculture Ltd. NS Pre-Affirmation 10,400 18.20%
CannTx Life Sciences Inc. ON Affirmation Letter 1,980 16%
Evergreen Medicinal Supply Inc. BC Cultivation License 6,600 6.60%
Great White North Growers Inc. QC Affirmation Letter 8,300 17.60%
Green Relief Inc. ON Sales License 115,500 24.45%
Harvest One Cannabis Inc. BC/SK Cultivation License 18,000 49%2
Lotus Ventures Inc. BC Pre-Affirmation 6,000 15.60%
PlanC BioPharm Inc. BC Affirmation Letter 7,000 49%
Sundial Growers Inc. AB Affirmation Letter 5,500 18.35%­­­
1 These are estimates based on current funding commitments. Some agreements have floating valuations which can impact ownership percentages at time of funding. 2 Represents equity in a new applicant
“Pre-Affirmation” indicates that the LP applicant has yet to successfully proceed past the “Review” stage of the licensing processing. Once an LP applicant completes the “Review” stage of the licensing process, Health Canada will issue an “Affirmation Letter” which requires among other things, the LP applicant to provide an affirmative response to Health Canada that all necessary security features are present, installed and operational at the proposed facility. Upon providing an affirmation response to Health Canada, a Pre-Licensing Inspection will be scheduled for the proposed facility.

Website

We invite shareholders and interested parties to visit our new corporate website at: http://www.cannabiswheaton.com to learn more.

ON BEHALF OF THE BOARD

Chuck Rifici

Chairman & CEO

About Cannabis Wheaton Income Corp. (TSX VENTURE: CBW)

Backed by a team of industry experts, Cannabis Wheaton is the first cannabis streaming company in the world. Our streams will include production from across Canada coming from our partners comprised of licensed producers of cannabis (LP) and late-stage LP applicants. Cannabis Wheaton’s mandate is to facilitate real growth for our streaming partners by providing them with financial support and sharing our collective industry experience.

Stay Connected

For more information about Cannabis Wheaton and our management team, please visit http://www.cannabiswheaton.com, or follow us on Twitter @CannabisWheaton. Call: 1-604 687 7130 Email: Mario@skanderbegcapital.com http://www.skanderbegcapital.com

This news release contains certain “forward-looking information” within the meaning of applicable Canadian securities law. Forward-looking information is frequently characterized by words such as “plan”, “continue”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “potential”, “proposed” and other similar words, or information that certain events or conditions “may” or “will” occur. This information is only a prediction. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking information throughout this news release. Forward-looking information includes, but is not limited to: the ability to generate revenue through the streaming agreements, requirements to obtain additional financing, timeliness of government approvals for granting of permits and licences, including licences to cultivate cannabis, completion of the facilities, where applicable, actual operating performance of the facilities, regulatory or political change, competition and other risks affecting the Company in particular and the medical cannabis industry generally. Forward-looking information is based on the opinions and estimates of management at the date the information is made, and is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

The securities referred to in this news release have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This release does not constitute an offer for sale of, nor a solicitation for offers to buy, any securities in the United States.