Canadian CANNAINVESTOR Magazine July / August 2017 - Page 98

NOTICE TO READER:

Due to the ongoing investigation into this matter, the Q&A necessarily respects and reflects that ongoing investigation. Canadian CannaInvestor Magazine (CCIM) has no desire to identify any source that may have contributed adversely to recent events as doing so may afford them further attention.

It is also important to note that CBW did not approach us to discuss this nor was there any compensation of any kind or any other benefit afforded for this interview. The questions asked are from Louis Kyron without edit or compromise. The interview was between Louis Kyron, Managing Editor and Hugo Alves, President.

CCIM: Thank you for your time as I know how busy all of you must be not only with the running of what most coverage have referred to as a "gamechanging" business model in the industry but also in dealing with recent events that you have stated have adversely affected your operations and share price.

CBW: Thanks Louis, I appreciate your time as well. There has been a lot of attention on CBW lately, although I note that much of it has nothing to do with the underlying business model or the management team’s ability to execute it. That’s what I’d like to focus on.

CCIM: Briefly, can you explain what CBW is and what CBW does ... your business model.

CBW: The core financial model is that CBW provides licensed producers or license producer applicants with CapEx financing to allow the producer or applicant to build or expand its cultivation facility. In exchange for that financing we take back a combination of (a) equity in the streaming partner; and (b) a percentage of the streaming partner’s cultivation yield for a certain period of time and at a negotiated price per gram. In addition to the capital, CBW’s streaming partners get access to CBW’s management team of industry leading experts to help accelerate the growth of their enterprise.