Supply agreement enables Cannabis Wheaton Income Corp. (TSXV:CBW) to accelerate the execution of its international distribution strategy 12 to 18 months ahead of schedule
SmallCapPower | January 18, 2018: Cannabis Wheaton Income Corp. (TSXV:CBW), the world’s first cannabis streaming company, announced Wednesday that it has inked an interim supply agreement with Aphria Inc. (TSX:APH). As per the agreement, Aphria will supply Wheaton’s subsidiary Navisent Inc., created for establishing international distribution channels, with up to 60,000 kgs of cannabis, including dried flower and cannabis oil through February 1, 2022. The supply agreement enables Cannabis Wheaton to accelerate the execution of its international distribution strategy 12-18 months ahead of schedule. A definite agreement that will supersede this interim agreement will be entered into between both companies shortly.
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Hugo Alves, President of Cannabis Wheaton, said, “As we’ve demonstrated through our previously announced distribution partnerships, we are focused on building strategic distribution channels for Wheaton’s own cannabis products and those of our streaming partners. As our distribution platform starts to take shape domestically we have been actively exploring high margin international channels in emerging federally legal jurisdictions. We are thrilled to be partnering with an industry leader such as Aphria as we begin to execute our international strategy. This supply arrangement enables us to deploy product into international jurisdictions that are of interest to us and gain brand presence and market share in those markets on an accelerated timeline. With over 800 million people residing throughout legalized cannabis jurisdictions globally and an addressable global medical market size expected to exceed $30 billion by 2021, this agreement with Aphria allows us to meaningfully participate in international supply opportunities 12 to 18 months ahead of schedule as we continue to develop our own domestic production platform. We view this as an accretive arrangement for both Cannabis Wheaton and Aphria and look forward to working with Vic and his team.”
Since its inception, Cannabis Wheaton has developed its streaming platform by funding numerous cannabis facilities/partners across Canada in exchange for minority equity interests and portions of the cultivated production. For the past few months, Cannabis Wheaton has been aggressively pursuing the development of distribution channels in Canada and Internationally through alliances. Some of the key distribution alliances that Cannabis Wheaton has signed recently included exclusive distribution alliance with a national chain of independent pharmacies in Sept 2017; alliance with a national chain of convenience stores in October 2017; and the recent (Jan 9th 2018) partnership and investment in retail franchisee, Inner Spirit, that gives Cannabis Wheaton exclusive right to supply up to 50% of Inner Spirit’s annual inventory requirements for any cannabis, cannabis-infused or cannabis-derived products. For international distribution, Cannabis Wheaton has created Navisent Inc. and the current supply deal with Aphria ensures enough cannabis supplies for establishing strong presence in various federally legal international jurisdictions. Cannabis Wheaton currently trades at a market cap of $639 million.
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