CFN Media

May 18, 2017 09:00 ET

Cannabis Wheaton: Diversified Exposure to Licensed Producers -- CFN Media

SEATTLE, WA--(Marketwired - May 18, 2017) - CFN Media Group ("CFN Media"), the leading agency and digital media network dedicated to legal cannabis, today announced publication of an article discussing how Cannabis Wheaton (TSX VENTURE: CBW) (OTC PINK: KWFLF) is transforming the cannabis industry's investment model and changing the way companies work together.

Rapidly Growing Industry

Canada has become a pioneer in the legalization of medical and recreational cannabis. With plans to legalize recreational cannabis next year, Deloitte Canada projects that the market could mushroom into a $22.6 billion industry. The retail market is projected to be worth between $4.9 billion and $8.7 billion per year, while growers, testing labs, lighting providers, security systems, and other ancillary services would increase that number to $12.7 billion to $22.6 billion.

Health Canada has already approved more than 40 licensed producers, but analysts still project a shortfall in supply that could support high prices. PI Financial believes that licensed producers will need to cultivate a total of 610,000 kilograms of cannabis to meet domestic and export demand by 2019, but existing capacity could result in a 200,000 kilogram shortfall. And, the rigorous process of becoming a licensed producer could limit future supply growth.

These dynamics have encouraged existing licensed producers to invest in ambitious expansion plans to maximize their revenue. Despite the market's potential, raising capital can be somewhat difficult and expensive due to the unique risks associated with the industry. Lenders have a tough time determining compliance, licenses are not transferrable, inventories aren't salable, and there are risks with lending to non-compliant borrowers.

Streaming Business Model

Cannabis Wheaton aims to solve these problems and capitalize on the $22.6 billion industry with an innovative streaming business model.

The company has already established 14 agreements across six provinces to fund facility construction, expansion, and innovations in exchange for minority equity interests and portions of the cultivation production. Through these agreements, the company has access to 1.3 million square feet of cultivation (by 2019), 30,000 registered patients, and nearly 40 medical marijuana clinic partnerships located throughout the country.

In addition to financing, the company provides its partners with access to its industry relationships and brand building expertise. The company plans to continuously build its partners' product offerings to maintain brand and consumer loyalty as the market moves toward recreational legalization next year. The goal is to help these partners maximize their profitability, which in turn helps maximize the company's equity interest in them.

Investors benefit from this business model by realizing the upside of multiple cultivation facilities without risks like build-out delays, licensing delays, or poor harvests. In essence, the company provides an exchange-traded fund (ETF) like vehicle for investing in the cultivation and production side of the cannabis industry, along with exposure to the consulting and branding segment of the industry over the long-term.

Experienced Management

Cannabis Wheaton's management team is comprised of industry first-movers, visionaries, and experts dedicated to helping its streaming partners reach their growth potential.

Chairman and CEO Chuck Rifici founded Canopy Growth Corp. and built it into a 500,000 square foot licensed producer. Today, the company is worth over C$1 billion and has become a leader in the space. Mr. Rifici is also the CEO of Nesta Holding Co., a private equity firm that builds partnerships and brands within the cannabis space, as well as Chairman of National Access Cannabis, a clinic helping patients access cannabis.

CFO and COO Jeff Tung, CFA, was the co-founder of CPS Management Partners, where he led the acquisition of multiple businesses in the insurance space. Ultimately, the firm became the largest workers' compensation claims administrator in Canada with IRRs in excess of 50%.

Chief Creative Officer Ian Rapsey is an award-winning creative director that helped build Tweed Marijuana's rebranding of Bedrocan following its acquisition. Prior to working in the cannabis industry, he was the creative lead at Bruce Mau Design where he was working with global brands.

Chief Infrastructure Officer Brad McNamee is a second-generation mechanical contractor specializing in HVAC design and design-build services. He was a key member of the original ground-breaking team tasked with pioneering a large scale indoor environmental production platform for the medical cannabis industry prior to joining the company.

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About CFN Media

CFN Media (CannabisFN) is the leading creative agency and media network dedicated to legal cannabis. We help marijuana businesses attract investors, customers (B2B, B2C), capital, and media visibility. Private and public marijuana companies and brands in the US and Canada rely on CFN Media to grow and succeed.


Except for the historical information presented herein, matters discussed in this release contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Emerging Growth LLC, which owns CFN Media and, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. Emerging Growth LLC may from time to time have a position in the securities mentioned herein and may increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice. Emerging Growth LLC may be compensated for its services in the form of cash-based compensation or equity securities in the companies it writes about, or a combination of the two. For full disclosure please visit:

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