|Date Announced:||March 15, 2018|
|Client Name:||Cannabis Wheaton Income Corp.|
Cannabis Wheaton Income Corp. entered into a strategic alliance agreement with Ontario-based research and development firm Honest Inc. (d/b/a Province Brands of Canada) whereby the Company will assist Province with the establishment and licensing of a cannabis facility focused on the research, development and commercialization of cannabis-based beverages.
Pursuant to the Agreement, and subject to applicable laws, the Company will assist Province in obtaining the Federal licensing necessary for Province to engage in the research, development and commercialization of cannabis-based beverages through its Wheaton Licensing Program by providing Province with the resources and expertise necessary to achieve the License.
Through the strategic alliance, the Company will receive 2,068,284 preferred shares in the capital of Province, representing a 10% equity ownership interest in Province on a fully diluted basis, and to further the strategic alliance between the two companies, Cannabis Wheaton will issue 303,030 common shares to Province. The Agreement shall last for at least 3 years and shall automatically renew for 1-year periods unless otherwise mutually terminated by the Company and Province. The Company and Province have also agreed to explore and collaborate on further commercial opportunities including supply and offtake arrangements, cannabis genetics development and refinement, co-branding opportunities, white-label opportunities, IP development and licensing as well as international distribution opportunities.