Canada House Wellness Group Inc. Announces Partnership with Weedbox Inc.

Published: July 16, 2019

Canada House Wellness Group Inc. Announces Partnership with Weedbox Inc.

Canada House Wellness Group Inc. has entered into a binding agreement on July 12, 2019 with Weedbox Inc. The Agreement outlines details for the completion and operation of its previously announced licensed Cannabis Dispensary in Edmonton, Alberta. Site plans and construction of the Dispensary under the Weedbox lifestyle brand, Somewhere Variety®, will begin in the fall of 2019 with an anticipated opening in spring 2020.

“We are extremely excited to be collaborating with Weedbox and its stellar team of industry veterans. Their collective retail experience includes Lululemon, Roots Canada, Tokyo Smoke, Paul Frank, and Last Gang Records, to name a few. This partnership allows Canada House to leverage Weedbox’s extensive retail experience and its leading consumer brand as we enter into the recreational space in Canada,” said Michael Orrbrooke, Chief Revenue Officer, Canada House. “We will also work with Weedbox to share our expertise in cannabis production and bring signature brands of top-grade cannabis and cannabis products to the recreational market.”

“As a leading cannabis lifestyle company with expertise in branding and retail, cannabis stores and premium cannabis products are the logical next steps for us,” said Jeremy Potvin, CEO, Weedbox. “After meeting with Canada House, we knew instantly this was the organization we wanted to partner with. Together, we will create something unique in the recreational market.”

As part of the agreement, Weedbox will acquire a 49 percent interest in the Dispensary in exchange for a three-year non-interest-bearing promissory note in the amount of $500,000 CAD. Capital required for the Edmonton store buildout, including working capital for its operations, will be provided by Canada House and Weedbox in proportion to their shareholdings. Weedbox will contribute $250,000 CAD of in-kind marketing, product development, and customer relations expertise to help market the Edmonton location and the co-branded cannabis products.

Canada House will become Weedbox’s exclusive supplier of cannabis derived, finished, branded, cobranded, manufactured, and white label products including, but not limited to, flower, vapes, topical and sublingual products, pre-rolls, concentrates, and edibles (subject to applicable legislation and regulations). Weedbox agrees to carry a listing of products produced or distributed by Canada House for the recreational and health and wellness markets in the Somewhere Variety┬« store in Edmonton and across Canada as other locations open.

Canada House will cause shares (priced at a 25 percent discount to the volume-weighted average price of Canada House’s common shares for the five days prior to the closing date of the transaction with Weedbox) with an aggregate value of $250,000 CAD to be issued to Weedbox in exchange for a five-year term convertible promissory note in the principal amount of $250,000 CAD, bearing interest at 10 percent per annum and a warrant certificate entitling Canada House to purchase $250,000 CAD of common shares in Weedbox.

Upon completion of the capital expenditure related to the build out of the Dispensary, Canada House will issue an additional number of shares (priced at a 25 percent discount to the volume-weighted average price of Canada House’s common shares for the five days prior to the completion of such capital expenditure) with an aggregate value of $250,000 CAD to be issued to Weedbox in exchange for a further five-year term convertible promissory note in the principal amount of $250,000 CAD, bearing interest at 10 percent per annum and a warrant certificate entitling Canada House to purchase $250,000 CAD of common shares in Weedbox.

Canada House Wellness Group’s goal is to become the leading cultivator of premium craft cannabis and provider of cannabinoid therapy, targeting the medical cannabis markets globally. Weedbox is a vertically-integrated cannabis company with a subsidiary lifestyle store and brand, Somewhere Variety┬«, home to in-house brands ranging from cannabis and accessories to hemp apparel and homewares. There will also be a focus on infused skincare products and apothecary.

For more information, please visit www.canadahouse.ca.

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