NEWS BRIEF

Canadian cannabis company to pay $1.6M for California dispensary

A Canadian marijuana company has entered into an agreement to buy a privately owned medical cannabis dispensary in California for $1.6 million (CA$2 million), the latest sign that interest in American MJ assets is slowly picking up in Canada.

British Columbia-based Marapharm put down a cash deposit of $160,000 for Green Leaf Wellness in Desert Hot Springs, according to a news release.

Another $1.44 million is payable on the closing of the deal, which is expected by the end of the year.

Marapharm – traded on the Canadian Securities Exchange (CSE) under the symbol MDM – already owns cultivation properties close to the Green Leaf Wellness location.

Green Leaf Wellness’ leased space in a strip mall consists of 3,200 square feet of retail space and 3,000 square feet of unused cultivation space.

Here’s what you need to know:

  • Marapharm plans to use the cultivation space, which it says is licensed.
  • Green Leaf Wellness nets about $35,000 per month from sales.
  • Green Leaf Wellness will become a division of Marapharm.
  • Canadian companies on the CSE are allowed to own American marijuana assets as long as they disclose risks to investors.
  • Canadian companies on the Toronto Stock Exchange and TSX Venture are not allowed to own cannabis assets in the United States.
  • Other Canadian companies on the CSE, such as Ottawa’s CannaRoyalty Corp. (CRZ), are heavily invested in the American market.

Matt Lamers can be reached at [email protected]

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