The Continued Expansionary Push of Cannabis Wheaton Income Corp (OTCMKTS:CBWTF)

The Continued Expansionary Push of Cannabis Wheaton Income Corp (OTCMKTS:CBWTF)


When it comes to the bigger players in the Canadian cannabis patch that have shown a strong push toward expansion in this increasingly market-share dominated outcome distribution conversation, Cannabis Wheaton Income Corp (OTCMKTS:CBWTF) ranks clearly near the top of the list, which is why we continue to keep very close tabs on the stock. Shares have been walking along strong support at around $1.15/share over the past 3 months and may be starting to show some new upward momentum in recent days.

To push that needle up the dial even further, the company just announced that it has entered into a definitive licensing agreement with Dixie Brands, Inc. pursuant to which Cannabis Wheaton will have the exclusive license to Dixie’s intellectual property, product branding and formulation methodologies related to over 100 cannabinoid-infused products in Canada and Mexico.

Cannabis Wheaton Income Corp (OTCMKTS:CBWTF) trumpets itself as an investment company that seeks to provide investor returns through streams and capital appreciation in the Canadian cannabis industry.

The company operates as a cannabis streaming company. It provides funding for cannabis facility expansions, operations, and initial construction in exchange for minority equity interests and a portion of the cultivation production.

The company was formerly known as Knightswood Financial Corp. and changed its name to Cannabis Wheaton Income Corp. in May 2017. Cannabis Wheaton Income Corp. was incorporated in 1987 and is based in Vancouver, Canada.

According to company materials, “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.”

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Hugo Alves, President of Cannabis Wheaton stated, “I have personally known the Dixie team for many years and have the utmost confidence in their people and the high-quality products that they produce. Over the past five years I have watched Dixie amass an impressive intellectual property library and we believe that their proprietary formulations and products continue to separate them from their competitors. We are eager to learn from one of the best producers of cannabis-derived products in the world and this long-term partnership cements a long-standing relationship and evidences our commitment to ensuring product diversity within our platform and mitigating margin compression through the acquisition and development of value-add IP.”

Chuck Smith, CEO of Dixie, stated, “This is an exciting time for Dixie.  For nearly a decade, our team has worked passionately to develop safe, consistent, and innovative products under a brand that consumers have come to know and trust.  We have worked hard with our partners to build that brand responsibly in Colorado, California, Nevada, and Maryland. Now, our partnership with Cannabis Wheaton will greatly broaden the reach of Dixie’s product portfolio as they begin distribution throughout Canada and Mexico.  We look forward to continuing Dixie’s standard of excellence in our expansion efforts throughout North America.”

The chart shows 11% added to share values of the listing over the past week of action. Moreover, the listing has benefitted from a jump in recent trading volume to the tune of 14% above the average volume levels in play in this stock over the longer term.

Now commanding a market cap of $535.3M, CBWTF has a significant war chest ($33.5M) of cash on the books, which compares with virtually no total current liabilities. The company is pre-revenue at this point. This is an exciting story, and we look forward to a follow-up chapter as events transpire. Sign-up for continuing coverage on shares of $CBWTF stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in $CBWTF, either long or short, and we have not been compensated for this article.

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