NetworkNewsBreak – Cannabis Wheaton (TSXV: CBW) to Invest $30M in ABcann Global Corporation (TSXV: ABCN) for Construction of Additional Cannabis Cultivation Facility
Medical cannabis grower ABcann Global (TSXV: ABCN) is set to receive an investment of $30 million from Cannabis Wheaton Income (TSXV: CBW) for the funding of a 50,000-square-foot cultivation space at ABcann’s proposed facility to be located in Napanee, Ontario. Per a binding interim agreement announced earlier this week, Cannabis Wheaton’s investment will fund the construction of an “expansion production area” that is in addition to ABcann’s 100,000-square foot-facility, which is expected to commence construction “imminently.” Cannabis Wheaton will receive 50% of the proceeds (net of certain costs) of future wholesale or retail sales completed by ABcann with respect to cannabis produced in the additional space. “This partnership is a great opportunity for both ABcann and Cannabis Wheaton. ABcann significantly enhances its cash position through the equity investment, providing ABcann with the capital to construct up to 180,000 square feet of fully funded capacity,” ABcann CEO Aaron Keay stated in the news release.
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