CannaRoyalty Investee, AltMed, Closes $35.4 Million Private Placement Financing
Post-money valuation represents approximately 215% growth in value for CannaRoyalty shareholders
All numbers in US dollars unless otherwise noted
Ottawa, Canada – April 26, 2018 – CannaRoyalty Corp. (CSE: CRZ) (OTCQX: CNNRF)(“CannaRoyalty” or the “Company”), a leading North American cannabis products and brands company, is pleased to announce that one of its investee companies, Alternative Medical Enterprises, LLC(“AltMed”), has closed a private placement financing of $35.4 million (the “Financing”). CannaRoyalty made a $1.5 million equity investment in AltMed in 2015; the post-money valuation of this current financing represents a growth in value of approximately 215% for CannaRoyalty shareholders.
“Congratulations to Mike Smullen, Matt Duffy and the entire team at AltMed for the tremendous growth they have generated this year, as well as the international recognition that their MÜV product line has received,” said Marc Lustig, CEO of CannaRoyalty. “Our investment alongside the AltMed team has driven tremendous value for our shareholders and is representative of the unique investment opportunities CannaRoyalty has been able to participate in as one of the first movers in the U.S. cannabis industry. We expect to realize further value from our rights to the MÜV product suite, particularly as we build our presence in Canada and other jurisdictions.”
AltMed Chairman and CEO Mike Smullen added, “The Financing will enable us to build out our 25 licensed dispensaries in Florida, expand our cultivation capabilities and increase our footprint in Arizona. We anticipate significant growth over the next few years as we expand our licensed facilities to meet the needs of medical patients in Florida and Arizona. We are grateful to CannaRoyalty and CR Advisory for their expertise and assistance in getting our company to this stage.”
AltMed currently has vertically integrated cannabis operations in Arizona and Florida with a pipeline of expansion opportunities to scale operations significantly in the US medical cannabis market and expand into the international market. Additionally, the company owns MÜV™, a full range of premium smoke-free cannabis products designed and produced to the highest standards, including topicals, inhalers, vaping products, shatter and crumble as well as oral sprays and tinctures. CannaRoyalty has a 3.5% royalty on global net sales of the following MÜV products; transdermal patches, metered dose inhalers, and patent-pending transdermal gels. The Company also has the right to license MÜV products in California and Canada.
The MÜV brand of cannabis infused products was launched in Arizona in 2016 and has quickly gained international attention and recognition. In its first six months alone, MÜV received four best of Arizona medical cannabis awards, including two first prizes for its proprietary extractions that are the basis of all MÜV products.
Alternative Medical Enterprises, LLC, a private company headquartered in Sarasota, FL and doing business as AltMed Enterprises, is a fully integrated company that brings pharmaceutical industry precision to the development, production and dispensing of medical cannabinoids.
About CannaRoyalty Corp.
CannaRoyalty is an active operator and investor in the global cannabis industry, with a strong focus on California, the world’s largest cannabis market. Our core mission is to become the leading global consumer product goods company for discerning cannabis consumers. We are currently focused on building a diversified portfolio of manufacturing, distribution, intellectual property, and infrastructure assets to achieve this goal. Our leadership team combines a passion and hands-on understanding of the cannabis industry, with seasoned financial and legal expertise. CannaRoyalty’s shares trade on the Canadian Stock Exchange (CSE) under the symbol CRZ and internationally on the OTCQX under the symbol CNNRF.
For further inquiries, please contact:
Marc Lustig, CEO
Jonathan Ross, CFA
LodeRock Advisors Inc.