Mr. Chuck Rifici of Cannabis Wheaton reports

ABCANN GLOBAL AND CANNABIS WHEATON SIGN INTERIM AGREEMENT FOR CONSTRUCTION OF ADDITIONAL CANNABIS CULTIVATION FACILITY

ABcann Global Corp. and Cannabis Wheaton Income Corp. have entered into a binding interim agreement to finance the construction of 50,000 square feet of cultivation space (the expansion production area) at ABcann's proposed cannabis cultivation facility to be located in Napanee, Ont., known as the Kimmett facility. Pursuant to the agreement, Cannabis Wheaton has agreed to invest $30-million in ABcann as follows:

• 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.
• 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.

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. 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 expansion production area allocation will not begin until after the completion of Cannabis Wheaton's $30-million investment.

Chuck Rifici of Cannabis Wheaton said: "This now adds a sixth licence to the Cannabis Wheaton portfolio, and our first publicly traded producer with a sales licence. Over the past three years, I've watched ABcann's involvement and evolution in the Canadian cannabis industry. They are widely recognized for their proprietary cultivation methods that produce high-quality cannabis with industry-leading yields. It's clear to us that they had their pick of funding sources, so it's an honour to make this announcement today.

"This partnership will bring to ABcann the support and funds necessary to break ground on the Kimmett site. Once construction is complete, the additional cultivation space will provide Cannabis Wheaton with an estimated eight million grams of cannabis per year."

"This partnership is a great opportunity for both ABcann and Cannabis Wheaton. ABcann significantly enhances its cash position through the equity investment, providing ABcann with the capital to construct up to 180,000 square feet of fully funded capacity," said Aaron Keay, chief executive officer of ABcann.

The agreement remains subject to certain conditions precedent, including receipt by ABcann of applicable Health Canada and other regulatory approvals and the ability of the parties to agree on future construction budgets and timelines.

About ABcann Global Corp.

ABcann was one of the first companies to obtain a production licence under the marijuana for medical purposes regulations, which it received on March 21, 2014. It also obtained a sales licence on Dec. 31, 2015. Situated in Napanee, Ont., ABcann has spent the last two years focused on changing the face of medical cannabis. ABcann intends to be the first company to have repeatable products in multiple continents and to provide standardized medical cannabis to the world.

About Cannabis Wheaton Income Corp.

Backed by a team of industry experts, Cannabis Wheaton is the first cannabis streaming company in the world. The company's streams will include production from across Canada coming from its partners comprising licensed producers of cannabis and licensed producer applicants.

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