Cannabis Wheaton’s CA$15M purchase of ABcann shares OK’d

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Cannabis Wheaton received approval from the TSX Venture Exchange to purchase 15 million Canadian dollars ($12 million) of ABcann shares.

The transaction is part of a larger CA$30 million investment Cannabis Wheaton is making to fund the construction of a 50,000-square-foot (4,600-square meter) expansion at ABcann’s proposed Kimmett cannabis cultivation facility in Napanee, Ontario.

After the CA$30 million investment is completed, Cannabis Wheaton will be entitled to 50% of the cannabis yield in the expansion area, which it estimates at 8 million grams (8.8 tons) per year.

Cannabis Wheaton, which funds entrepreneurs entering Canada’s marijuana industry, trades as CBW on the TSX Venture Exchange.

ABcann (TSX Venture Exchange: ABCN) is a Napanee-based licensed producer of medical cannabis.

The 50,000-square-foot expansion is in addition to a 100,000-square-foot facility that ABcann is planning to begin construction on in the third quarter of this year.

The first harvest at the Kimmett site is expected to occur in the fourth quarter of 2018, and the facility is forecast to reach full production capacity in the first quarter of 2019.