On January 11, 2018, Cannabis Wheaton Income Corp. (d/b/a Wheaton Income) (TSXV: CBW) announced that it had entered into a letter of intent with Level Ten Inc., whereby Level Ten will become a strategic streaming partner to the company.
Pursuant to the letter of intent, Wheaton Income would assist Level Ten in obtaining a cultivation license pursuant to the Access to Cannabis for Medical Purposes Regulations (“ACMPR”) for its proposed state-of-the-art greenhouse cultivation facility to be located near Brantford, Ontario. In addition, Wheaton Income would fund the construction costs for the development of Phase I pursuant to an agreed upon construction budget and timeline, currently estimated to be $35 million.
As consideration for providing the funding for Phase I and assisting with the licensing process, Wheaton Income would receive: (i) a 20% equity interest in the capital of Level Ten; and (ii) a perpetual stream of 30% of all cannabis and cannabis-derived products cultivated in the Phase I facility.
Miller Thomson advised Level Ten with respect to the negotiation of this letter of intent with a team that included Todd Bissett and Melissa Tummon.
