Medican Enterprises Inc (OTCMKTS:MDCN)announced that it will expand its leasing dispensary operations to California. For the purpose the company had even signed a deal with Breeding Rare Cannabis Original Genetics Inc.
As per the deal, BRCOG will provide indoor warehouse and outdoor warehouse leasing services along with leasing of R&D property for a total sum of $9000 per month. The minimum initial lease term is of five years which can be extended on mutual consent. Under the deal, Medican is expected to offer lease improvements services by mode of financing, equipment and grow technologies.
The opportunity
The team of BRCOG is delighted to enter into a lease deal with Medican as it is an experienced leader in the cannabis services industry. Mr. R. White, the Chief Executive of BRCOG expressed his excitement over the deal and stated that the deal brings new synergies to their operations. It will help them to enhance the productivity of production and improve R&D activities.
The Californian asset in discussion is located in Anza and is the first of many planned projects. The company wants to make use of growing cannabis market that posted a growth of 74% last year. It was a $2.7 billion market in the U.S. out of which 49% contribution came from California market.
Medican Enterprises Inc (OTCMKTS:MDCN) lost a solid 18.18% in the last trading session with the volume surging to 241 million, considerably higher compared to the average volume of 143 million. The sustained high level of volume implies the consistent sell off on part of the scared and desperate investors who want to get out at any possible price. The entire decline from the swing high of $0.20 is perfectly contained in a log channel and as the recent rejection from exactly the upper boundary shows, unless the channel is broken on the upside, no bullish hopes can be entertained.
The expansion
The Chief Executive Officer of Medican Mr. Ken Williams said that they are thrilled to start an alliance with BRCOG in the California market. The most vital part is to find a leasing location and then put in required efforts to develop it and make it a lucrative business opportunity. The company is targeting California market and it is the first step towards expansion in California.