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.
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 mattl@mjbizdaily.com
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