CannaRoyalty Announces Successful Completion of $5 Million Financing by Investee Company Resolve Digital Health
Ottawa, Canada – March 28, 2017 – CannaRoyalty Corp. (CSE:CRZ) (OTCQB: CNNRF) (“CannaRoyalty” of the “Company”) is pleased to announce that one of its investee companies Resolve Digital Health (“Resolve”), a medical cannabis delivery system company that develops proprietary smart technology, has completed a $5 million Series A financing round led by Canadian TSX-listed company and ACMPR Licensed Producer, Aphria Inc. (TSX:APH) together with participation by CannaRoyalty which will now own 27.2% of the existing shares of Resolve on a non-diluted basis, a holding with an implied value of approximately $7.1 million based on the financing price.
“We are breaking new ground with the strides taken over the last two years to completely rethink the medical cannabis experience with a patient-centric approach that is measurable and trackable at the heart of our strategy,” said Rob Adelson, Founder and CEO of Resolve Digital Health. “The advancements made thus far would not have been possible without the support and collaboration from Marc and the team at CannaRoyalty, which are even stronger today with our new partner, Aphria.”
From its initial investment in October 2015, CannaRoyalty saw the immediate opportunity in Resolve. Through multiple share acquisitions, including C$80,000 invested in this financing, CannaRoyalty has acquired a substantial ownership position in Resolve and provided seed capital and resources for the research and development of Resolve’s unique medical device system, Breeze. Unlike many existing cannabis products, Breeze is unique in that it provides an accurate, metered, treatment solution with pre-packaged, single use pods filled with the highest quality cannabis buds or oil, making it easy and safe for end-users.
“We are thrilled about participating in the closing of this financing. It provides third party validation of our initial investment in Resolve at a significantly higher valuation,” said Marc Lustig, CEO of CannaRoyalty. “It is an example of the success of our business model that includes identifying high-value cannabis assets, partnering through investment and assisting in the growth and commercialization of brands, products and devices – while increasing value for our shareholders.”
CannaRoyalty is a fully integrated, active investor and operator in the legal cannabis sector. Our focus is to build and support a diversified portfolio of growth-ready assets in high-value segments of the cannabis sector, including research, consumer brands, devices and intellectual property. Our management team combines a hands-on understanding of the cannabis industry with seasoned financial know-how, assembling a platform of holdings via royalty agreements, equity interests, secured convertible debt and licensing agreements.
About Resolve Digital Health
Resolve Digital Health is the leading provider of standardized medical cannabis for patients suffering from cancer, arthritis, migraine headaches, chronic pain and other diseases. The company’s proprietary technology and cloud-based health information platform found in Resolve’s debut product Breeze addresses the numerous issues with currently available methods of cannabis delivery – establishing a standard of care and rigorous medical approach previously missing from the medical cannabis industry. With over two years of research and development, the complete product ecosystem will be initially available Spring 2017 in select dispensaries in the United States. For more information, visit www.resolvedigitalhealth.com.
For further inquiries, please contact: