CannaRoyalty forms CR Advisory Services and Secures its First Engagement with Alternative Medical Enterprises
Ottawa, Canada – July 10, 2017 – CannaRoyalty Corp. (CSE: CRZ)(OTCQX: CNNRF) (“CannaRoyalty” or the “Company”), a fully integrated, active investor and operator in the legal cannabis industry is pleased to announce that its newly formed CR Advisory Services Inc. (“CR Advisory”) division has secured its first engagement with one of its investee companies Alternative Medical Enterprises, LLC (“AltMed”).
Following the successful launch of its CR Brands division, and in order to support its recently announced joint venture with Sprott Inc. (“Sprott”), CR Advisory has been established to provide consulting and advisory services to the global cannabis industry.
Marc Lustig, CEO of CannaRoyalty stated, “The challenges faced by cannabis companies in this nascent and highly-regulated industry are considerable, and CR Advisory provides these companies with the expertise required to realize significant and sustainable growth, and also achieve critical strategic corporate milestones. CannaRoyalty’s business relationship with AltMed is an excellent example of the strong relationships we have fostered with our investees through a multitude of platforms to assist in developing them into industry leaders, while generating significant returns for CannaRoyalty shareholders.”
CR Advisory will be providing a full suite of advisory services within the areas of corporate finance, capital markets, compliance and regulation, accounting, operations, as well as retail and sales strategy. In addition, marketing and branding services will be provided through CannaRoyalty’s wholly-owned marketing and design agency, Electric Medialand. CR Advisory will initially be providing these services to its current investees, such as AltMed. Following the launch of its joint venture with Sprott, CR Advisory will also focus on providing strategic support in sourcing and driving the growth of joint venture funded companies. CR Advisory may look to ultimately provide its services to non-investee companies operating within the global cannabis industry.
Advisory Services Agreement with AltMed
Terms of the CR Advisory engagement with AltMed include an upfront work fee of US$150,000, plus a success fee on corporate transactions undertaken by AltMed during the consulting services agreement (the “Agreement”) or within six months after termination of the Agreement. CannaRoyalty currently holds a 8.2% equity stake in AltMed, a 3.5% revenue royalty extending to December 31, 2025 on a number of its MüV products, as well as the right to license MüV products in Canada, Puerto Rico and certain US states. This engagement expands CannaRoyalty’s financial exposure to AltMed, while also providing CannaRoyalty with an improved ability to support and accelerate AltMed’s growth, through CR Advisory. For more information on AltMed, go to www.altmed.co.
“We are pleased to have the support and guidance of CannaRoyalty through its CR Advisory division as we prepare to launch a significant corporate transaction for AltMed,” said Mike Smullen, CEO of Altmed. “We have enjoyed a strong working relationship with CannaRoyalty over the life of our company and are confident we will successfully advance our expansion and development with their help.”
CannaRoyalty is also pleased to announce that it has engaged the services of Stoic Advisory Inc. (“Stoic”) to assist CR Advisory and with other CannaRoyalty initiatives. Stoic was founded in 2016 by cannabis industry expert Aaron Salz, and has quickly become a highly reputable consulting firm focused on providing strategic corporate finance advisory services and transactional support to companies within the global cannabis industry. As consideration for these services, Stoic has been issued CannaRoyalty common shares effective the date hereof, which are subject to customary hold periods.
CannaRoyalty is a fully integrated, active investor and operator in the legal cannabis sector. Our focus is building and supporting 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, licensing agreements and its own branded portfolio.
For further inquiries, please contact:
CannaRoyalty Investor Relations