Medican Signs Deal to Acquire Canadian Firm With Potential MMPR
April 10th, 2014
Canada’s Marihuana for Medical Purposes Regulations (“MMPR”) officially went into effect on April 1, 2014. The new set of rules replaced the old Marihuana Medical Access Regulations (“MMAR”) and require medical marijuana users to purchase the drug directly from Licensed Producers rather than purchasing it from the government or growing it on their own in their homes.
Medican Enterprises, Inc. (OTC: MDCN), a biopharmaceutical company in the emerging global medical marijuana industry, aims to become one of those Licensed Producers with its acquisition of 50% of International Herbs Medical Marijuana Ltd. (“IHMML”). With an MMPR application in place, IHMML’s team of highly skilled contractors is working to retrofit a large-scale cultivation and distribution center.
Medican plans to incorporate these elements with its existing infrastructure to create a well financed research and cultivation facility, cutting edge fulfillment technologies and a direct distribution channel or its products. IHMML’s building is located in Atholville, NB, while it has additional contracts to purchase a 300,000 sq. ft. facility in Pokemoush, NB and a 25,000 sq. ft. facility in Delta, BC.
According to Health Canada, there are only 12 Licensed Producers approved right now to sell or provide eligible persons with medical marijuana, although approximately 450 companies have applied. Similarly, there are only 40,000 eligible patients right now, but those numbers are expected to increase to an estimated 450,000 by 2024, driving the industry to $1.3 billion in size.
Tweed Inc. (TSXV: TWD) became the first publicly traded Licensed Producer in Canada, but others like Medican Enterprises hope to join the fold in the near term. With its extensive platform of products, services, and technologies, the company may be better positioned than most to capitalize on the market’s demand and ultimately unlock long-term value for its shareholders.
comments powered by Disqus
Follow Us on Social Media
Cannabis Financial Network (CannabisFN) is brought to you by TDM Financial, a financial media group and owner of SECFilings.com with over a decade of experience educating investors, profiling public companies, and developing specific investors audiences. CannabisFN is the largest dedicated financial network covering the cannabis and medical marijuana (MMJ) industries and educates investors, business developers and media on industry news, thought leader and executive perspectives, and the fluid regulatory environment while serving as a leading corporate communications platform to public and private companies operating in the industry.
Disclaimer: Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and may increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice. Emerging Growth LLC dba TDM Financial, which owns CannabisFN, may be compensated for its services in the form of cash-based compensation or equity securities in the companies it writes about, or a combination of the two. For full disclosure please visit: http://www.cannabisfn.com/legal-disclaimer/.