Cannabis Wheaton Expands to the International Market

On January 30, 2018, Cannabis Wheaton Income Corp., a provider of funding to marijuana producers in exchange for equity, struck an interim deal with Inverell Corp., a Uruguayan-based marijuana producer. Inverell agrees to cede 80% of their shares to Cannabis Wheaton in exchange for approximately 15 million dollars in cash and capital. This newest acquisition propels Cannabis Wheaton into the international market space.

Cannabis Wheaton’s interest in the Uruguayan company stems from the expertise of its CEO, Raul Urbina. Urbina, a molecular biology expert, previously operated Stevia One, the lowest cost producer of Stevia worldwide. Stevia is a sugar alternative extracted from the leaves of the Stevia plant. Urbina turned from Stevia to marijuana last year after obtaining a federal licence to grow and export marijuana products. In anticipation of the growing worldwide interests in medical grade marijuana, Urbina exercised his molecular biology expertise to transform his 16-acre property into a low THC marijuana crop. His first crop matures next month.

Low THC marijuana, also known as Cannabidiol (CBD) contains little of the chemical Tetra-hydro-cannabinol (THC). THC affects a person’s perception of time, space, memory, and pleasure. In medical marijuana, these effects are undesired. Low THC strains remove the undesired effects and instead, prioritise the plant’s pain relieving qualities. Dr Peter Grinspoon, of the Harvard Medical School, claims that patients prescribed CBD report relief from insomnia, pain, anxiety, and reduced spasticity in conditions such as epilepsy. Dr Grinspoon states that, “Although we don’t have rigorous studies and “gold standard” proof of the benefits and risks of medical marijuana, we need to learn about it, be open-minded, and above all, be non-judgmental.”

Currently, medical marijuana benefits patients in Chile, Columbia, Australia, New Zealand, the Czech Republic, Canada, parts of the United States, and Uruguay. Uruguay, the first country to legalise the cultivation, distribution and usage of both recreational and medical marijuana in 2013, holds a strong advantage in the expanding international marketplace, due to its longevity in the business.

 

Screen Shot 2018-04-12 at 16.15.16.png

Laws on marijuana possession and use differ from country to country.

Source: https://www.marijuana.com/news/2017/11/where-in-the-world-is-marijuana-legal/

 

Hugo Alves, president of Cannabis Wheaton, stated with regards to the Inverell deal that, “We are incredibly excited to work with Dr. Urbina and his team in Uruguay. This transaction helps us secure a significant amount of CBD-rich hemp production that can be exported to other federally legal jurisdictions for further processing into nutritional and pharmaceutical products. We expect to see a significant increase in global CBD demand over the course of the coming years and believe that low-cost jurisdictions with favourable climates for outdoor cultivation will be key sources of CBD supply. As we continue to execute our international strategy, we are thrilled to have identified Inverell as our first international production operation.”

On behalf of Inverell, CEO Raul Urbina stated, “We are very excited to start this new adventure with a company that shares our values and vision and that will allow us to help deliver cannabis products under our 3 ‘P’ philosophy: People, Planet, Profit.”

Because of Urbina’s reputed success as a producer of high quality, high profit Stevia, Cannabis Wheaton anticipates Inverell’s crops to deliver strong margins. Uruguay already offers an opportunity for lower-cost production, compared to local Canadian growers. Cannabis Wheaton anticipates their most successful partnerships will occur in the international space.

Cannabis Wheaton claims as many as 16 partnership deals with local producers and suppliers of marijuana. Inverell’s production line adds to Wheaton’s growing distribution channel and potentially enables the company to become one of the largest suppliers of marijuana worldwide.

Cannabis Wheaton’s stocks closed at $2.18 following the announcement.

 

Screen Shot 2018-04-12 at 16.15.33.pngCannabis Wheaton stocks closed at $2.18 following the announced Inverell Corp. deal.

Source: https://ca.finance.yahoo.com/quote/CBW.V/chart?p=CBW.V

 

Sources:

Andrea Mandell-Campbell. (Moderator). (2018, February 12). Cannabis in Canada: will the market meet the hype? Canadian Club Toronto.

Bradford, A. (2017, May 18). What is THC? Live Science. Retrieved from https://www.livescience.com/24553-what-is-thc.html

Cannabis Wheaton acquires Uruguayan hemp CBD producer for $15 million. (2018, January 30). Marijuana Business Daily. Retrieved from https://mjbizdaily.com/cannabis-wheaton-acquires-uruguayan-hemp-cbd-producer-15-million/

Cannabis Wheaton Income Corp. (2018, January 30). Repeat: Cannabis Wheaton Income Corp. announces expansion to Uruguay and securing of significant hemp production. Cannabis Wheaton Income Corp. Retrieved from https://globenewswire.com/news-release/2018/01/30/1314183/0/en/REPEAT-Cannabis-Wheaton-Income-Corp-Announces-Expansion-to-Uruguay-and-Securing-of-Significant-CBD-Rich-Hemp-Production.html

Grinspoon, P. (2018, January 15). Medical Marijuana. Harvard Health Blog. Retrieved from https://www.health.harvard.edu/blog/medical-marijuana-2018011513085

Kuhl, L. (2018, January 30). Cannabis Wheaton Income enters Latin America via interim agreement with Inverell. Pot Network. Retrieved from https://www.potnetwork.com/news/cannabis-wheaton-income-enters-latin-america-interim-agreement-inverell

Nuckus, l. (2017, November 1). Where in the world is marijuana legal? Marijuana.com. Retrieved from https://www.marijuana.com/news/2017/11/where-in-the-world-is-marijuana-legal/

Stock Watch Daily. (2018, January 31). Cannabis Wheaton to buy 80% of Inverell for $15 million. Press Reader. Retrieved from https://www.pressreader.com/canada/stockwatch-daily/20180131/281492161755210