NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION TO UNITED STATES
VANCOUVER, British Columbia, Dec. 22, 2017 (GLOBE NEWSWIRE) -- Cannabis Wheaton Income Corp. (d/b/a
Wheaton Income) (TSX.V:CBW) ("Wheaton Income" or the "Company") is pleased to announce a
private placement offering of up to 38,709,677 convertible debenture units ("Convertible Debenture Units") with a
conversion price of $1.55 per common share for aggregate gross proceeds of up to $60 million (the "Offering").
The net proceeds received by the Company will be used to fund working capital and general corporate purposes,
including but not limited to, financing of the Company's streaming partners pursuant to certain streaming agreements and general
and administrative expenses.
MMCAP International Inc. SPC (the "Lead Subscriber") and the Company have executed a binding
term sheet with respect to the Offering, whereby the Lead Subscriber has agreed to subscribe for up to $48,000,000 million
aggregate principal amount of Convertible Debenture Units. Closing of the Offering is subject to the satisfaction of customary
conditions.
Convertible Debenture Units
Each Convertible Debenture Unit will be offered at a price of $1,000 per Convertible Debenture Unit for
aggregate gross proceeds of up to $60 million. Each Convertible Debenture Unit will consist of $1,000 principal amount of 6% senior
unsecured convertible debentures (the "Debentures") and 322 Common Share purchase warrants (the "CD
Warrants") of the Company. Each CD Warrant will be exercisable to acquire one Common Share at an exercise price of $1.80
per Common Share for a period of 24 months following the Closing Date.
The Debentures will bear interest from the closing date of the Offering at 6% per annum, calculated
semi-annually on June 30 and December 31 of each year. The first interest payment will be made on June 30, 2018 and will consist of
interest accrued from and including the Closing Date to June 30, 2018. The Debentures will mature on the date that is 24 months
from the Closing Date (the "Maturity Date").
The Debentures will be convertible at the option of the holder, at any time prior to the close of business on
the last business day immediately preceding the Maturity Date, into that number of common shares of the Company ("Common
Shares") computed on the basis of the principal amount of the Debentures divided by the conversion price of $1.55 per
Common Share (the "Conversion Price"). The Debentures will provide for the adjustment of the Conversion Price in
certain events.
Beginning on the date that is four months and one day following the Closing Date, the Company may force the
conversion of the principal amount of the then outstanding Convertible Debentures at the Conversion Price on not less than 30 days’
notice should the daily volume weighted average trading price of the Company’s Common Shares be greater than $3.10 for any 10
consecutive trading days on the TSX Venture Exchange, or such other exchange as the Common Shares may then be trading.
Upon a change of control of the Company, on the date that is not less than 30 days following the giving of
notice of the change of control, the Debenture holders shall, in their sole discretion, have the right to require the Company to,
either: (i) purchase the Debentures at 100% of the principal amount thereof plus unpaid interest to the Maturity Date; or (ii) if
the Change of Control results in a new issuer, convert the Debenture into a replacement debenture of the new issuer in the
aggregate principal amount of 101% of the aggregate principal amount of the Debenture.
The Debenture shall be offered and sold by private placement (i) in Canada to "accredited investors" within the
meaning of NI 45-106 - Prospectus Exemptions and other exempt purchasers in each province of Canada, and (ii)
outside Canada and the United States on a basis which does not require the qualification or registration of any of the Debentures
or the Company. The Debentures, CD Warrants and the Common Shares issuable upon the conversion of the Debentures and CD Warrants,
will be subject to a statutory four month hold period.
Conversion of Convertible Debentures
In addition, the Company announces that the majority of holders of convertible debentures issued on June 29,
2017 (the “June Debentures”) have elected to use reasonable commercial efforts to convert their June Debentures
into Common Shares at a conversion price of $1.00 per share prior to the Closing Date.
Related Party Disclosure
The Lead Subscriber is considered to be a related party for purposes of Multilateral Instrument 61-101
- Protection of Minority Security Holders in Special Transactions ("MI 61-101") and Policy 5.9
- Protection of Minority Security Holders in Special Transactions of the TSX Venture Exchange, making the
Offering a "related party transaction". Pursuant to MI 61-101, the Company has filed a material change report providing disclosure
in relation to each "related party transaction" on SEDAR under the Company's issuer profile at www.sedar.com. The Company did not file the material change report more than 21 days before the
expected closing date of the Offering as the definitive documentation for the Offering and the participation therein by each
"related party" of the Company were not settled until shortly prior to the closing of the Offering, and the Company wishes to close
the Offering on an expedited basis for sound business reasons.
Closing Conditions and Related Matters
Subject to the satisfaction of customary of conditions, the Offering is expected to close on or about January
12, 2018.
ON BEHALF OF THE BOARD
"Chuck Rifici" Chairman & CEO
About Wheaton Income. (TSX.V:CBW)
Wheaton Income is a collective of entrepreneurs with a passion for the cannabis industry past, present
and future. Our mandate is to facilitate growth for our partners by providing them with financial support and sharing our
collective industry experience. Our partners all have different visions, voices and brand values, and all share a common
goal—to build a world-class industry based on ethics, diversity, quality and innovation.
Stay Connected:
For more information about Cannabis Wheaton and our management team, please visit: http://www.wheatonincome.com, or follow us on Twitter @WheatonIncome. Call: 1.604.687.7130
Email: Mario@skanderbegcapital.com (http://www.skanderbegcapital.com).
Media Contact:
Sarah Bain, VP External Affairs
Email: sarah@cannabiswheaton.com
Phone: 613.230.5869
Forward-Looking Information
This news release contains certain "forward-looking information" within the meaning of applicable Canadian securities law.
Forward-looking information is frequently characterized by words such as "plan", "continue", "expect", "project", "intend",
"believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or information that certain
events or conditions "may" or "will" occur. This information is only a prediction. Various assumptions were used in drawing the
conclusions or making the projections contained in the forward-looking information throughout this news release. Forward-looking
information includes, but is not limited to: closing of the Offering, inability to complete the Offering on the proposed terms or
at all, delays in obtaining or inability to obtain required regulatory approvals, regulatory or political change, the ability to
generate revenue through the streaming agreements, requirements to obtain additional financing, timeliness of government approvals
for granting of permits and licences, including licences to cultivate and sell cannabis, completion of the facilities, where
applicable, actual operating performance of the facilities, competition and other risks affecting the Company in particular and the
cannabis industry generally. Forward-looking information is based on the opinions and estimates of management at the date the
information is made, and is subject to a variety of risks and uncertainties and other factors that could cause actual events or
results to differ materially from those projected in the forward-looking information. The Company is under no obligation, and
expressly disclaims any intention or obligation, to update or revise any forward -looking information, whether as a result of new
information, future events or otherwise, except as expressly required by applicable law.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release
The securities being offered have not been, nor will they be, registered under the United States
Securities Act of 1933, as amended, and may not be offered or sold in the United States or to, or for the account or benefit of,
U.S. persons absent registration or an applicable exemption from the registration requirements. This news release will not
constitute an offer to sell or the solicitation of an offer to buy nor will there be any sale of the securities in any State in
which such offer, solicitation or sale would be unlawful.
