Monster Marijuana Deal is a Win-Win for ABcann and Cannabis Wheaton

Monster Marijuana Deal is a Win-Win for ABcann and Cannabis Wheaton
Monster Marijuana Deal is a Win-Win for ABcann and Cannabis Wheaton

Heads You Win, Tails I Win:

You’re not going to see opportunities like this come along often.

What if I told you Jeff Bezos, the founder of Amazon, just announced he’s putting $1.2 billion into a new tech start-up…

Bezos cited the advanced efficiency, early leadership, and exceptionally bright future of of this rapidly growing start-up as his reason for the massive investment.

Would you be interested?

Of course you would.

But what if I told you that you could also buy in at 55% less than Bezos in the exact same start-up?

It’d be a no-brainer, right?

Sure it would.

Well, that’s the kind of opportunity you’re going to see today.

The only difference is it’s not Bezos, Amazon, and the latest tech start-up, it’s a similar situation red-hot Canadian marijuana.

 Check this out.

 Major Marijuana Investment Just Announced

 Marijuana investors aren’t going to see an opportunity like this for a long time.

A major marijuana deal was just struck between a hot, innovative marijuana finance company and one of the fastest-growing marijuana producers in North America one understands what it all means.

But the Seed Investor understands it completely.

In the next three minutes you will too.

And, as a result, you’ll be able to get in on it all while everyone else is still putting the pieces of this puzzle together.

The conclusion here is really simple:

The leading marijuana finance company is paying above top dollar merely for the right to finance one of the most effective Canadian marijuana growers in hopes of being allowed to put up all the money for half the profits on a project down the line.

What a deal right?

Well, it is.

But getting to that conclusion isn’t so simple for many investors.

That will change though.

And by the the time they do put it all together, this opportunity will have passed you by.

Don’t let it.

Just follow the breakdown of this major marijuana deal below you’ll be able to get in on the big winner resulting from it all.

Major Marijuana Investment Just Announced

Marijuana investors aren’t going to see an opportunity like this for a long time.

A major marijuana deal was just struck between two leading major marijuana companies.

On one side is ABcann Global (TSXV:ABCN / OTCBB:ABCCF), a well-funded, fully licensed Canadian marijuana producer with huge growth targets, market-leading production efficiency, and is valued at a price that makes it the cheapest Canadian marijuana stock on the market today.  

On the other side is Cannabis Wheaton (TSXV:CBW / OTCBB:KWFLF), an innovative marijuana financing company headed by the early leaders in the Canadian marijuana industry and is the process of completing an $80 million capital raise for itself.

The two have struck a deal which provides funding to accelerate the growth for ABcann, will eventually give Cannabis Wheaton a large stream of marijuana production, and gives early investors an opportunity to get in it all at 55% below the price paid by Cannabis Wheaton.

The Seed Investor’s breakdown of the deal below goes over the details of the deal and how you can benefit from it all.  

ABcann Global and Cannabis Wheaton Strike Major Marijuana Deal

Yesterday afternoon ABcann and Cannabis Wheaton got together to announce a major deal that’s going to set them both on a much more rapid growth trajectory than anyone previously expected.

The structure of the deal is a bit complicated, but if you take a look at the individual parts, there’s a clear way you can profit from it all.

Here’s the full press release covering the deal.

Below is a breakdown of the key parts of the announcement and which company gets what and what it means for the futures of these two rising marijuana powerhouses.


What ABcann Gets

 Equity Investment (Stage 1):

On the date that is the earlier of 10 days of the final closing of Cannabis Wheaton's previously announced financing or by June 30, 2017, Cannabis Wheaton will subscribe for $15-million of ABcann common shares at an agreed-upon valuation of $2.25 per ABcann share.

What it means:

ABcann, which closed Monday at 96 cents per share, is getting financed for $15 million at $2.25 a share.

That’s a 134% premium to the market price.

Investors who bought are paying less than half of what Cannabis Wheaton is getting in at.

That alone makes ABcann, at it’s current price, a virtual steal right there.

 Equity Investment (Stage 2):

On the date that is the earlier of 10 days of Cannabis Wheaton raising an aggregate of $150-million or March 31, 2018, Cannabis Wheaton will subscribe for an additional $15-million at a price per ABcann share equal to the greater of two times the 10-day volume-weighted average trading price of the ABcann shares at the relevant time or $2.25.

What it means:

Again, ABcann gets funded at $2.25 per share.

That’s more than double the current market price.

It’s a great funding source with far less dilution for shareholders.

Advanced Expansion Project:

Upon completion of the $30-million investment and upon accepting ABcann's construction budget and timeline for the construction of the expansion production area, Cannabis Wheaton will provide all necessary financing to complete the construction of the expansion production area.

This expansion will be in addition to ABcann's current 100,000-square-foot facility that is commencing construction imminently.

What it means:

ABcann gets $30 million up front at way-above-market price to fund the rapid build out of its 100,000 square foot, state-of-the-art marijuana production facility.

The $30 million investment goes right into that.

 And here’s the real key: Cannabis Wheaton gets no part of that expansion.

At this point, Cannabis Wheaton is a regular shareholder just like you or anyone else who bought into ABcann while it’s still valued at a fraction of its peers.

The deal isn’t all one-sided though.

What Cannabis Wheaton Gets

Advanced Expansion Project:

In return, Cannabis Wheaton will receive 50 per cent of the proceeds (net of certain costs) of future wholesale or retail sales completed by ABcann with respect to cannabis produced in the expansion production area. Cannabis Wheaton's entitlement to the EPA (Environmental Protection Agency) allocation will not begin until after the completion of Cannabis Wheaton's $30-million investment.

What it means:

This is the most important part of it all and it’s where the confusion sets in.

Luckily, the Seed Investor is here to explain it.

Cannabis Wheaton is doing all this to get 50% of the proceeds from a 50,000 square foot expansion.

Does this mean Cannabis Wheaton get’s half of all ABcann’s marijuana production?

No. Not even close.

Look at the details.

Cannabis Wheaton will get 50% of of proceeds from 50,000 square foot expansion project only after ABcann’s current 100,000 square foot expansion is complete.

This is critical and where a lot of confusion is happening in the market today.

To repeat, ABcann must complete construction on the 100,000 square foot build out of its Kimmett facility in Ontario.

Cannabis Wheaton doesn’t get anything until that is complete.

After that’s done, Cannabis Wheaton must provide all the capital for the 50,000 square foot expansion.

This what makes a “good” deal a “great” one for ABcann

What It All Means

All this seems a bit complicated at first.

If you looked at the full deal announcement, it’s all crammed into three paragraphs which doesn’t help the public understanding of it all.

However, the results of the deal are really simple.

Cannabis Wheaton, the top marijuana finance company, is paying above top dollar for the right to finance ABcann, one of the most effective Canadian marijuana growers, in hopes of being allowed to put up all the money for half the profits on a project down the line.

It’s a sweet, sweet deal for ABcann.

And it's a great deal for Cannabis Wheaton, they just invested in a fully liscensed, proven market-leading grower.

The way it’s put together, it will work out great for ABcann now and well into the future.
High profits,
The Seed Investor
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