Medican Enterprises Inc. (OTCBB: MDCN) a bio-pharmaceutical company in the emerging global medical marijuana industry is pleased to announce its wholly owned subsidiary Canaleaf Systems Inc. (the Company) has signed a definitive purchase agreement to acquire 50 percent of International Herbs Medical Marijuana Ltd. ("IHMML").
In a move designed to signal the on-going development of the Company's cultivation operations and further expand its sales activities, the acquisition gives Medican immediate access to 400,000 sq. ft. of industrial cultivation space in Atholville, NB and ownership of a direct distribution channel to this medical sector.
"The industry economics are very attractive and the medical marijuana sector is positioned for solid long-term growth," said Kevin Coft, CEO of IHMML. "We are excited to build our business with Medican Enterprises and strive to become the premier cultivator and distributor of pharmaceutical grade medical marijuana in Canada."
Through the acquisition, Medican has gained access to highly skilled contractors working on the retrofit of a large scale Research, Cultivation and Distribution Center in Atholville New Brunswick, Canada. In addition IHMML has contracts to purchase an approximately 300,000 sq. ft. (with the potential to expand to a total of 600,000 sq. ft.) facility in Pokemoush, NB and a 25,000 sq. ft. facility in Delta, BC.
In addition, Medican now has the ability to extend distribution channels and fulfillment technologies across all corporate interests. These platforms allow Doctors to quickly and efficiently prescribe medical marijuana to their patients, and enable them to safely order and receive pharmaceutical grade cannabis directly from the Company. By integrating fulfillment capabilities, Medican continues to demonstrate its commitment to innovate around the convergence of R&D, cultivation and distribution of pharmaceutical grade medical marijuana to patients.
"We are pleased to announce this transaction is now complete," said Ken Williams, CEO of Medican Enterprises. "In terms of strategic goals the two businesses are well aligned and our complimentary strengths provide significant opportunity to further create value for our investors. Together our combined offering provides a well financed research and cultivation facility, cutting-edge fulfillment technologies and a direct distribution channel for our products."
With the close of the acquisition, the IHMML team joins the Medican Enterprises management team and bring with them strong operational experience and professional services skills to support the Company's business goals.