(Image Credit - Nick Youngson)
This morning, CannaRoyalty Corp. (CSE:CRZ)(OTC:CNNRF) announced that the company has established a division ("CR Advisory") to provide consulting and advisory services specifically tailored to the cannabis industry. They also announced that the division has secured its first engagement with Alternative Medical Enterprises, LLC ("AltMed"). AltMed is one of CannaRoyalty's investee companies.
About CR Advisory
CR Advisory will be providing advisory services in the areas of corporate finance, capital markets, compliance and regulation, accounting, operations, and sales. Marketing and branding services will also be made available through CannaRoyalty's wholly owned marketing and design agency, Electric Medialand. Initially, CR Advisory will be providing these services to its current investees. Following the launch of the joint venture with Sprott, CR Advisory will provide services relating to sourcing company candidates for investment and driving the growth of the joint venture's investees. Down the road, CR Advisory may expand to provide its services to non-investee companies.
In connection with the launch of CR Advisory, CannaRoyalty has engaged the services of Stoic Advisory. Stoic Advisory was founded in 2016 and is focused on providing corporate finance advisory services and transactional support to companies within the cannabis industry. As consideration for these services, Stoic has been issued CannaRoyalty common shares effective July 10th. The shares are subject to the customary four-month hold period.
Terms of AltMed's Advisory Agreement With CR Advisory
Upfront work fee of $150,000
Success fee on corporate transactions undertaken by AltMed during the consulting services agreement or within six months after termination of the Agreement
CannaRoyalty and AltMed
CannaRoyalty currently holds an 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.
The advisory agreement increases CannaRoyalty's financial exposure to AltMed, and gives CannaRoyalty a chance to better support growth at AltMed. Learn more about AltMed by visiting, www.altmed.co.
CannaRoyalty's CEO, Marc Lustic
"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."
AltMed's CEO, Mike Smullen
"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. 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."
Learn more about CannaRoyalty Corp. by checking out the company's marijuana stock profile in our global marijuana stock database.
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