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CCIM: Just what is it that CBW brings to the table to those companies looking for financing and partnering?
CBW: CBW brings capital, strategic expertise and the ability to allow our streaming partners to leverage the CBW platform for their benefit. Cultivating cannabis in accordance with the ACMPR is a difficult business, especially at the beginning when the operator is still dialing in their cultivation practices, scaling up their human resources and, of course, complying with the requirements of the ACMPR in real time. CBW’s management team will act as a helpful hand to our streaming partners in whatever way they need. Whether they are trying to navigate a delicate regulatory issue, need help with branding, marketing, cultivation or infrastructure issues, the CBW team will bring its expertise to bear for the benefit of our streaming partners. For us it’s all about our streaming partners. Our success is inextricably tied to their success and we intend to work tirelessly to ensure that each of our streaming partners thrives in the dynamic regulated cannabis market.
CCIM: How do these recent events affect, if at all, the recent deal struck with AbCann?
CBW: No impact. We are thrilled to have AbCann as a streaming partner. Anyone who has had the pleasure of visiting the current AbCann facility and meeting their incredible operations team will understand why we’re excited to have AbCann as part of the CBW family.
CCIM: Can you succinctly remind our readers of the structure of the AbCann deal and how it benefits not only CBW but also AbCann because understanding clearly and plainly how this transaction is a "win-win" for both companies affords that level of comfort that investors may expect from more transactions in the near future.
CBW: Sure. I think from the AbCann perspective they are able to take in equity financing at a significant premium to current market prices and, importantly, they recognize the inherent value in being able to access the CBW management team for their benefit. From CBW’s perspective, we look at the investment as a whole (subscription price and construction financing) and measure it against the value of the production yield that we derive from the AbCann stream and, from that perspective, the economics of the transaction are in line with CBW’s other streaming deals with ACMPR license holders. However, like AbCann, we also recognize that there is other value beyond pure economics.