Cannabis Wheaton Income Corp. (CBW)

[chasem]

$CBW "With a market capitalization around $82 million, ABcann presents great value for Cannabis Wheaton and should be on the radar of investors in this space. Other Canadian licensed producers carry much higher market valuations. Even at a C$2.25 per share valuation (about $180 million US market cap) ABcann still represents a compelling value in the industry with many licensed producers commanding valuations two to four times higher."
http://m.marketwired.com/press-release/networknewswire-announces-publication-highlighting-public-companies-set-reap-rewards-tsx-venture-abcn-2236194.htm

[chasem]

Bank of Montreal provides accounts to at least a dozen MARIJUANA companies, including Aphria Inc., CannTrust Holdings Inc. and Invictus MD Strategies Corp., as well as investment firms $CBW Cannabis Wheaton Income Corp. and CannaRoyalty Corp. https://www.theglobeandmail.com/report-on-business/canadas-marijuana-industry-banks-on-bmo-and-td/article36504415/?utm_medium=Referrer:+Social+Network+/+Media&utm_campaign=Shared+Web+Article+Links

[chasem]

CFN Media Group Interview with Hugo Alves, President and Director of Cannabis Wheaton Income Corp. (CBW) http://www.cannabisfn.com/cfnvideo/?id=UBaRlmCF

[chasem]

$CBW CFN Media Exclusive Interview with Cannabis Wheaton President Hugo Alves: Diverse Exposure to Canadian Cannabis Cultivation.
http://m.marketwired.com/press-release/cfn-media-exclusive-interview-with-cannabis-wheaton-president-hugo-alves-diverse-exposure-2236228.htm

[chasem]

$BLEVF $CBW Cannabis Wheaton and Beleave Sign Definitive Agreement for up to $10,000,000 in Debt Financing
http://m.marketwired.com/press-release/cannabis-wheaton-beleave-sign-definitive-agreement-up-10000000-debt-financing-tsx-venture-cbw-2236138.htm

Check out Beleave's website pretty cool, especialy the 70,000 sq. ft. hybrid greenhouse expansion.
https://beleave.com/our-facilities/

[chasem]

Looks bang on to me nice work and thank you for sharing!!

[Spetty772002]

My personal opinion is that it will like fall between 10-12X estimated 2019 EBITA which would represent a 1100%-1300% s increase from the current share price of ~.80 which I think would work for most people over the course of the next 2-3 years.


Assumptions;

1) Per page 16 of 23 of the Investor Presentation PDF, their target EBITA/ gram is >$5.25 so I'm going to call it $5

2) 2. Multiple streams across Canada with anticipated 2019 year end annual runrate production of >115,000 kg x 1000 = 115,000,000 grams

3) CURRENT CONSENSUS AMONGST THE EQUITY RESEARCH COMMUNITY IS TO VALUE LICENSED PRODUCERS AT AN ENTERPRISE VALUE (EV) OF 4-10X 2021E EBITDA.

4) ROYALTY COMPANIES WITH SIMILAR MODELS IN THE MINING SPACE TYPICALLY TRADE AT AN AVERAGE OF 19X FORWARD EBITDA VS 7X FOR THEIR OPERATING PEERS.

5) Exchange rate: 0.814368 USD. Sep 19, 2017

6) $575,000,000 x 5 times 2019 EBITA =$2,875,000,000 market cap /estimated 500 million shares = $5.75/share x 0.814368 USD = $4.68/share = 585% current value

$575,000,000 x 10 times 2019 EBITA = $5,750,000,000 market cap / estimated 500 million shares = $11.50/share x 0.814368 USD = $9.37/share = 1,171% of current value

$575,000,000 x 15 times 2019 EBITA = $8,625,000,000 market cap /estimated 500 million shares = $17.25/share x $ 0.814368 USD = $14.05/share = 1,756% of current value

$575,000,000 x 19 times 2019 EBITA = $10,925,000,000 market cap / estimated 500 million shares = $21.85/share x 0.814368 USD = $17.79/share = 2,274% of current value ***note that this is the average multiple that streaming companies like Cannabis Wheaton typically command***


***The valuations above give Cannabis Wheaton no credit for the ownership interest that they obtain in each streaming partner's company in addition to the marijuana stream. The ownership %'s range from 10-50% depending on the risk profile and streaming partner and structure of each streaming deal

***A couple of areas where I'm being conservative across the board includes reducing their EBITA per gram by > 5% from their estimate of $5.25

***All of the other comparable companies are being valued on a multiple of 2021 EBITA however I can only extrapolate through 2019 for Cannabis Wheaton. We'd assume that Cannabis Wheaton's 2021 EBITA will be higher than 2019's but I'm giving them credit for zero EBITA growth for the last two years of 2020 and 2021

***The industry average is 100 grams produced per sq ft. and presentation states that they anticipate 1.4 million sq ft so that would equate to 140,000,000 grams produced per year but the company is estimating >115,000,000 so there is potentially a 25,000,000 gram level of safety

***Cannabis Wheaton is a pure streaming company which, if the industry average for metal mining companies are truly trading at an average 19x 2021 EBITA, there is a good probability Cannabis Wheaton could trade at a higher multiple as mining producers royalty streams are limited to the life of the mine whereas Cannabis Wheaton's streams are all guaranteed for 99 years

***There are currently approx 335,000,000 fully-diluted shares outstanding. This includes a 35 million share issuance announced today. I'm estimating that the company will issue another 165 million shares for a total of 500 million total shares, for the purposes which is I feel is extremely conservative

I'd be interested in any feedback from anyone wants to provide any analysis or point out any errors in my figures

[chasem]

See All $CBW streaming partners on page 18 and take a look at page 20...also take a look at what the 2019 footprint sq.ft will be..to give you an idea of potential IMO, it's more then canopy growth http://cannabiswheaton.co/images/CW_Deck.pdf

[chasem]

ULTIMATE DD
As of Sept 28th, 2017 Cannabis Wheaton $CBW TSX, $KWFLF OTC

1. According to a 2017 report by Deloitte, the legal Canadian marijuana market could soon be worth $22.6 billion annually over the coming years.

2. With federal legalization of recreational use scheduled for July 1st, 2018, the Canadian Cannabis Industry is in the midst of a major boom.

3. Cannabis Wheaton ( $CBW) Appoints Prominent Industry Figure Hugo Alves as President and he is a senior corporate and commercial Partner at Bennett Jones LLP specializing in complex domestic and international transactions. He has advised industry-leading Canadian and foreign clients in connection with private mergers and acquisitions, financings, public procurements, outsourcing transactions, joint ventures and strategic alliances and has significant venture capital and private equity experience. Hugo is also Canada’s leading advisor in the cannabis industry representing a variety of global industry participants, including licensed producers, licensed producer applicants, licensed dealers, e-commerce platforms, seed-to-sale software developers, design and build firms, patient aggregators, equipment manufacturers and distributors, and cannabis branding companies. Hugo has acted as lead counsel or played a key role in a wide variety of transactions since the inception of the cannabis industry in Canada and is widely regarded as a Canadian cannabis industry pioneer.

Hugo obtained his B.A from Carleton University, where he won the Senate Medal for Outstanding Academic Achievement and his J.D from the University of Toronto.
https://cannabiswheaton.co/team/

4. Chuch Rifici chairman, Chief Executive Officer is a true pioneer of the North American cannabis industry having founded Canopy Growth (formerly Tweed Marijuana) and building it into 500,000 square feet of thriving marijuana grow capacity as its CEO. Today, Canopy Growth is worth over $1 billion and recognized as a world class cannabis producer.

Chuck is currently CEO of Nesta Holding Co., a private equity firm that builds partnerships and brands within the cannabis space and Chairman of National Access Cannabis, a clinic chain ¬helping patients access the Canadian federal cannabis program.

Chuck is a chartered professional accountant. He obtained his MBA from Queen’s University and holds a BASc in Computer Engineering from the University of Ottawa.
https://cannabiswheaton.co/team/

5. While many licensed producers have focused on ramping up production capacity, Cannabis Wheaton ( $CBW) has created the first cannabis streaming.


6. There is no other medical marijuana producer out there that has group purchasing agreements that Cannabis Wheaton ( $CBW) does with the pharmacy group and that it has close ties to other independent pharmacy chains that collectively own and operate approximately 1,500 locations across Canada. This represents a significant portion of the more than 3,000 independent pharmacies throughout the country, which could become a key distribution platform for medical cannabis in many provinces and remote communities. http://www.cannabisfn.com/cannabis-wheaton-adds-valuable-new-distribution-channel/

7. Cannabis Wheaton ( $CBW) is one of the Top TSX-V shorted stocks out there right now IMO.
https://twitter.com/savestacks/status/911420392471851008/photo/1

8. Cannabis Wheaton ( $CBW) has an Agreement with Abcann ( $ABCN) to 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 Expansion Production Area (the “EPA Allocation“). http://www.skanderbegcapital.com/cannabis-wheaton/abcann-global-cannabis-wheaton-sign-interim-agreement-construction-additional-cannabis-cultivation-facility/


9. It was brilliant that Cannabis Wheaton ( $CBW) has such an agreement with Abcann IMO because it has a game changer computer-controlled growing platform that helps it produce in excess of 250 grams of cannabis per square foot each year, placing it among the highest yields within the Canadian sector. ABcann has not had any product recalls. In late July, the company provided an update on these construction efforts, noting that its plans to commence construction at the Kimmett facility remain on track for the third quarter of 2017, with first cultivation from the facility expected in the fourth quarter of 2018 and this will benefit Cannabis Wheaton with revenues IMO. http://www.abcannglobal.com/Kimmett-Facility.php

[chasem]

$CBW There is no other medical marijuana producer out there That has group purchasing agreements that Cannabis Wheaton does with the pharmacy group it has close ties to other independent pharmacy chains that collectively own and operate approximately 1,500 locations across Canada.

[chasem]

The technology and data collection is a game changer, maybe 3-6 months

[Dbrown13]

Give it time. Be ready to leave your money here for a year or two. Investor.

[chasem]

Abcann is producing just not at full compacity, a representative for Abcann said they will be selling CBD Oil sometime In October!

[Dbrown13]

The abcann facility is not yet complete and producing product.

[chasem]

Cannabis Wheaton Income Corp $CBW is one of the Top TSX-V shorted stocks out there right now and Abcann is about to sell a high demand pricey product CBD Oil sometime in October that will sell out IMO.
https://twitter.com/savestacks/status/911420392471851008/photo/1

Cannabis Wheaton $CW 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 Expansion Production Area (the “EPA Allocation“) not a very good time to be shorting IMO.
http://www.skanderbegcapital.com/cannabis-wheaton/abcann-global-cannabis-wheaton-sign-interim-agreement-construction-additional-cannabis-cultivation-facility/

[chasem]

Cannabis Wheaton $CW 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 Expansion Production Area (the “EPA Allocation“) not a very good time to be shorting IMO.

Take a look at the progress of the production area.

[chasem]

Cannabis Wheaton recently announced an exclusive distribution alliance with a national chain of independent pharmacies. Under the terms of the exclusive 10-year agreement, the two companies will develop and implement medical cannabis distribution and retail sale opportunities across 40 independent locations throughout Canada. The move could open the door to significant distribution opportunities for medical cannabis over the long-term.
Through group purchasing agreements, the pharmacy group has close ties to other independent pharmacy chains that collectively own and operate approximately 1,500 locations across Canada. This represents a significant portion of the more than 3,000 independent pharmacies throughout the country, which could become a key distribution platform for medical cannabis in many provinces and remote communities.
"We have been closely monitoring how the distribution of cannabis will play out in each of the individual provinces in Canada and how those provincial distribution systems may impact our streaming partners and our production yield allocations," said Cannabis Wheaton President Hugo Alves. "Our goal is to ensure that Cannabis Wheaton and its streaming partners have opportunities to participate in distribution channels which allow them to maintain contact with customers and capture a portion of the retail margin from sales to those customers."
Cannabis Wheaton's move to build potential distribution channels through pharmacies provides a glimpse into how the company's management team, comprised of seasoned industry experts, will strategically leverage their cannabis cultivation and supply platform.

Please follow the link to read the full article: http://www.cannabisfn.com/cannabis-wheaton-adds-valuable-new-distribution-channel/
For more information, visit the company's website at www.cannabiswheaton.co or download its investor presentation.

[chasem]

Cannabis Wheaton Announces Filing of Final Short Form Prospectus Qualifying the Distribution of Certain Securities Issuable in Connection With Its Previously Issued Special Warrants and Convertible Debentures Units
http://www.marketwired.com/press-release/cannabis-wheaton-announces-filing-final-short-form-prospectus-qualifying-distribution-tsx-venture-cbw-2235294.htm

[chasem]

If I post my shares for sale at a much higher price they can't be available to short right? I'm going to put an asking price of $5.00 tomorrow and maybe we can all try the same thing to force these shirts to cover IMO

[chasem]

I don't have time!

[Dbrown13]

You need to ask admin to make you a board moderator then :)

[chasem]

I just picked up over 10000 shares today!!!

[chasem]

Most importantly In return, CW 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 Expansion Production Area (the “EPA Allocation“) not a very good time to be shorting IMO.

[Dbrown13]

Looks like Wheaton funded some construction in May. http://www.skanderbegcapital.com/cannabis-wheaton/abcann-global-cannabis-wheaton-sign-interim-agreement-construction-additional-cannabis-cultivation-facility/

[chasem]

Aren't they partners with abcann $ABCN

[Dbrown13]

I'd have to look closer. Not sure if Wheaton has taken any deliveries or if any partners are close to harvest. I don't think so off hand.

[chasem]

They don't think revenues will increase in 6 months time?

[Dbrown13]

They might be looking at projected time till revenues.

[chasem]

I don't understand what the group shorting this stock thinks they are going to accomplish when I wouldn't be able to sleep at night if I was short here?

[Diogenes of Sinope]

Came aboard today. CBW---GLTA!

[chasem]

There is a $18 million short position for $cbw!! Just crazy IMO

[Diogenes of Sinope]

Looking to jump aboard CBW---GLTA!

[chasem]

Cannabis Wheaton May Recoup Some or All of 10% Lost Tuesday Sept 19,2017 as it Enters Exclusive Distribution Alliance With Independent Pharmacy Group IMO

[chasem]

Cannabis Wheaton Inc $CBW up 10% so far on this on this day and passed the $1.00 per share that I mentioned at the moment as I'm typing this!

This is just the beginning IMO

[Dbrown13]

Just occurred to me Chuck, this business model is perfect for you. Sort of a perpetual startup machine.

[Dbrown13]

Moving along nicely here. There's a lot to go around, for now good for one is good for all :)

[chasem]

Take a look at the TRIX reversal that started at the end of July, isn't she a beauty!
https://ih.advfn.com/p.php?pid=chartscreenshot&u=cYSI4fL9ajNLX6FhCN6jP3%2BraYoF9nLHu%2BiG93CTQew%3D&kslash=s

[chasem]

Cannabis Wheaton Inc ($CBW) up 16% on this day, watch to break $1.00 per share soon IMO.

[WeedWarrior]

CBW's expected annual production=255,380kg from 15 Streaming Partners -

🇨🇦@CannabisWheaton's expected annual production owed to them so far from their 15 streaming partners = 255,380kg of bud.$CBW $CBW.v $KWFLF pic.twitter.com/d1prtoZlz3

— Weed Warrior 🇨🇦 (@Weed__Warrior) July 23, 2017

Cannabis Wheaton's Investor Presentation - http://cannabiswheaton.co/images/CW_Deck_June.pdf

[WeedWarrior]

High! Canada Talks to Chuck Rifici Cannabis Industry Visionary

http://dankr.ca/lifestyle/high-canada-talks-chuck-rifici-cannabis-industry-visionary

[WeedWarrior]

Jul/Aug 2017 Canadian CANNAINVESTOR Magazine Q&A with CBW

https://view.joomag.com/canadian-cannainvestor-magazine-july-august-2017/0532602001500329643?token=xBd7xtAGSSqOjuMAXE079A%2Fw3%2FmkR5Fq2kcqLqxPvRfd%2BDT3LMqmIszpuCMeUrdT9hjHq8Gk5I22KygvQQdDMKi6SV%2BuVN0mAmu%2BF3RhX%2B13UvzLk%2F1X%2FjnuJvXYWgxOeZiP%2FT7NRLJQitP%2BficvR%2FRM6Le9rnPaZ9%2BpTbWhSQMzQnwT07uDKbJsST771xs4%2Fg8anayiRyO9v%2FTA92n3UA%3D%3D&ref=email

[GoldnBoy]

Recent Interview with CEO Rifici

[GoldnBoy]

I did see that, I don't think many realize how much Cannabis Wheaton could be producing through streams, I have no doubt they will be bigger than some of the top LPs combined

[HumbleBundle]

did you see last news on Evergreen, CBW could get 5,000 Kgs/year on this one stream alone

[GoldnBoy]

Could have a bottom in? I have a couple bids in lower, so hoping for another dip

[HumbleBundle]

Looks like stock dipped, have some extra free cash.....think Ill add some more. Could be good if get more near bottom

[djmurdock]

Got it, thanks

[GoldnBoy]

Basically they invest money and expertise into Licensed Producers or soon to be ones in return for a percentage of their production and revenues. The percentage can vary from 10% to 50% roughly and is often referred to as a stream or royalty.

The big advantage of this model is they gain the revenue without the cost, but it takes some capital to get started before the first streams start to kick in revenue

[djmurdock]

What do these guys even do? Site is very vague

[HumbleBundle]

looks like stock could be rallying! time to get in