Global Wellness Strategies

Overview

Global Wellness Strategies (CSE:LOAN,FWB:O3X4,OTCQB:PNNRF) is a Canadian merchant bank that provides medical cannabis companies across the globe with funding solutions.

The cannabis industry’s annual report for 2017 estimated that $4.75 billion would be spent on medical cannabis by 2018 and $6 billion on recreational cannabis by 2023. Both forms of cannabis are expected to make approximately $24 billion by 2025. However, federally regulated banks in Canada are reluctant to do business with cannabis companies and revenue-producing cannabis companies have difficulties obtaining loans from most banks. Additionally, the US federal government still treats cannabis as an illegal substance and banks can be accused of money laundering for assisting cannabis companies.

As a merchant bank for the medical cannabis industry, Global Wellness Strategies provides an alternative source of capital through loans to help cannabis companies finance themselves, build their valuation and grow their businesses without diluting their equity prematurely. Merchant banks predominantly provide international finance services by offering business loans and underwriting. Additionally, merchant banks sometimes provide the same services as investment banks do, but they generally don’t deal with the public.

Global Wellness Strategies’ portfolio consists of 10 to 15 companies that are currently generating a revenue of $2 million or more. Additionally, Global Wellness Strategies expects to have a return on investment (ROI) of approximately $54.7 million by 2019 on five of their initial clients.

Global Wellness Strategies has the right to acquire up to a 51 percent interest in Wahupta Ventures Inc., a Canadian hemp company based in British Columbia. Global Wellness Strategies intends to provide financial and advisory services to Wahupta to ensure the company’s success. Wahupta harvested approximately 2.5 million pounds of flower and hemp biomass from its test crop in 2018 and expects to harvest nearly 14 million pounds of flower and hemp biomass in 2019, positioning the company favorably for the roll-out of CBD products in Canada later in 2019.

As a supplement to its holdings in Canada, Global Wellness Strategies has opened its subsidiary, First Euro Cannabis, to provide financing to cannabis companies in Europe wishing to enter the European markets. First Euro plans to provide debt financing to companies in revenue or with sales in their pipelines to jumpstart their business plans and organic growth.

Global Wellness Strategies has also launched a beverage division to fill a key gap in the lifestyle-driven infused beverages market as the hospitality and health and wellness sectors start to boom. The company intends to provide an array of flavored hemp seed, hemp-infused teas and a hemp-based protein powder.

The company has also formed a strategic alliance with the Cannabis Mercantile Exchange (Cannamerx), who has developed a fully-automated B2B international auction platform for cannabis and hemp. Global Wellness Strategies intends to help Cannamerx finance its business model and build its global footprint. The company has also formed a strategic alliance with Fantasy Network Ltd. (TLV:FNTS) to pursue business opportunities in the Israeli medical cannabis sector.

Global Wellness Strategies’ CEO Meris Kott has been helping companies go public for over 25 years. Additionally, management owns approximately 15 percent of the shares in the company.

Global Wellness Strategies’ Company Highlights

• Invest in medical cannabis companies around the world that are currently generating $2 million or more in revenue.
• Nine-step screening process and collateral requirements de-risk the company’s investment in their clients.
• Fourteen percent compounded interest on fixed two-year term loans.
• Loans conversions on valuation estimates on initial loans of approximately $54.7 million by 2019 on five initial clients alone.
• Management holds approximately 15 percent of the company shares.

Global Wellness Strategies’ Solution for a Growing Medical Cannabis Market

Understanding the financing needs for the growing medical cannabis industry, Global Wellness Strategies is providing cannabis companies an alternative source of capital by offering loan facilities without diluting their equity. Global Wellness Strategies invests in companies that are currently generating over $2 million in revenue or have sales in their pipelines. Loans are offered to successful applicants in fixed two-year terms and are compounded monthly by 14 percent.

Successful applicants are also required to collateralize their loan with strong assets that are two to three times more than the value of the loan. Additionally, Global Wellness Strategies has the option to convert the loan, in its entirety or in part, at a 10 percent discount to the previous financing and retains the right of first refusal on all financing of debt or equity for the term of the loan. Finally, Refund assists companies wishing to be listed on a public market.

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