Canadian Bioceutical Corporation (
TSX: V.BCC,
Forum) is still waiting for Health Canada to green light its MMPR application for its facility located in Owen Sound, Ontario ever since the company announced it was getting into the medical marijuana game in January. In an effort to jump start the company’s stated pursuit, it put its reach south of the border and announced today that it had penned a letter of intent to acquire a Las Vegas-based Medical Marijuana Enterprise (“MME”).
According to the news release, the potential Nevada acquisition has been granted a provisional cultivation license by the state’s Division of Public and Behavioural Health.
Company CEO, Scott Boyes, commented on the potential deal, “We believe this acquisition will represent a new milestone in our Company's plan to become a significant participant in the North American medical marijuana industry. Nevada has been particularly progressive in the development of its medical marijuana ("MMJ") regulations and there is a very optimistic outlook for growth of the industry in the state.”
He then added, “Of particular note is the reciprocity offered to out-of-state medical marijuana card holders. With over 40 million people visiting Las Vegas every year, Nevada's policy of recognizing the status of patients from other jurisdictions significantly enhances the potential size of the MMJ market in the state.”
But that doesn’t mean the company is done above the 49
th parallel as Boyes explained, “While the revenue and profitability prospects for our Nevada operation is more immediate and potentially as large as any we could hope for in Canada, we continue to aggressively pursue our MMPR application with Health Canada and are moving ahead with our plans for the MMJ production facility in Owen Sound, Ontario. We are excited by the opportunity to be able to acquire and share market knowledge, production practises, technologies and strategic relationships between our MMJ operations on both sides of the border.”
The whole deal hinges on the company getting an agreement on closing documentation and securing the necessary financing to facilitate the closure of the transaction as well as the confirmation of the transferability of the licenses by the State and approval of the Board of Directors of BCC.
Currently there are 39.1 million shares with a market cap of $15.3 million.
FULL DISCLOSURE: Canadian Bioceutical Corporation is a Stockhouse Publishing client.