An Australian medical marijuana company is acquiring Nova Scotia-based Mernova Medicinal for 10.1 million Canadian dollars ($8.1 million) in the latest example of foreign interest in Canada’s booming MMJ market and next summer’s anticipated recreational cannabis rollout.
After the cash-and-equity deal is completed, Creso Pharma will be the only Australian-based cannabis firm with direct exposure to the world’s largest legal MMJ market.
Mernova, a privately held Canadian company, has applied for an MMJ cultivation license that it expects to receive “in the coming months,” according to a Creso Pharma news release. Once it has the license, Mernova will begin construction of a 20,000-square-foot facility.
In February, Creso Pharma announced plans with the pharmaceutical group Health House International to import and sell Canadian cannabis oil products in Australia.
The move into Canada isn’t Creso Pharma’s first foray into an international market. Last fall it signed a distribution agreement to sell its hemp-based CBD products in the Czech Republic.
Also last fall, Creso Pharma agreed to market Saskatoon, Saskatchewan-based CanniMed’s marijuana brands in the European Union.