Moving to another concern often raised by investors revolves around dilutive financing. Not only does dilution typically reduce existing shareholders proportional ownership but it also increases the supply of shares outstanding. You know from our past content that the laws of supply and demand cannot be defied for long. An increase in supply of outstanding shares available on the secondary market places downward pressure on share price. Westleaf is approaching this challenge by ensuring that low-cost non-dilutive financing is used where possible. Westleaf’s cultivation plant, named The Thunderchild faciltiy is currently under construction in Saskatchewan and is funded through this low-cost non-dilutive capital through two tranches of financing from ATB Financial. The Alberta based crown corporation did its due diligence on the company and determined this was the right place for its money. As did the namesake Thunderchild First Nation, an indigenous community near the facility that was one of Westleaf’s first and largest investors.
Because the purpose of our case studies is for awareness, discussion, and education and not as financial or investment advice, it is comforting to see some top companies in the space investing in Westleaf. Banking insitutions like ATB and leading cannabis companies such as Tilray and VIVO (formally AbCann), have not only made strategic investments in Westleaf, but have also forged strong synergistic value-added partnerships to support the retail and branding opportunities as well as providing access to their high-quality cannabis products.
Third party attestation or validation is a strong level of comfort afforded to the typical retail investor because of the tendency for confirmation bias to creep into decisions. Tilray and VIVO have done their due diligence as has ATB Financial, based on a thorough due diligence have invested in Westleaf.