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10:24 AM EST, 01/09/2018 (MT Newswires) -- Cannabis Wheaton Income (CBW.V) filed Tuesday a final short form base shelf prospectus with the securities regulatory authorities in each of the provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, Newfoundland and Labrador, New Brunswick, Nova Scotia and Prince Edward Island. The prospectus will allow the company to offer from time to time, over a 25-month period, common shares, preferred shares, debt securities, subscription receipts, warrants and units with an aggregate value of up to $100 million. Should the company offer any securities, it will make a prospectus supplement available that will include the specific terms of the securities being offered. Earlier Tuesday, CBW entered into investment and alliance agreements with Inner Spirit Holdings -- the parent company of Spirit Leaf, a company focused on the franchising of retail cannabis dispensaries in Canada. Inner Spirit has currently executed more than 95 franchise agreements in Canada for proposed retail locations. Under the terms of the Investment Agreement, the company will acquire 15.0 million common shares representing near 18.5% of the outstanding Inner Spirit Shares in exchange for $0.35 million, near 0.7 million common shares at $2.15 apiece, and 1.25 million common share purchase warrants at $2.53 apiece for a period of 24 months from the closing of the transaction Meanwhile, the Strategic Alliance Agreement grants the company with the exclusive right to supply up to 50% of Inner Spirit's annual inventory requirements for any cannabis, cannabis-infused or cannabis-derived products to be sold at Spiritleaf Retail Dispensaries. The parties have agreed that to a profit-sharing arrangement relating to sales of Cannabis Products. Inner Spirit CEO Darren Bondar said that Cannabis Wheaton's knowledge in the cannabis industry is a "great asset" for them and their franchise partners. He said: "Upon legalization of recreational cannabis, we look forward to offering Wheaton and their streaming partners' brands in Spiritleaf dispensaries and having a diverse and unique offering that customers will not be able to find anywhere else." |