Canadian MMJ Company to Expand U.S. Footprint

A publicly traded Canadian medical marijuana company is boosting its U.S. presence by entering into an agreement to acquire two marijuana licenses – one production, one processing – from a cannabis company in Washington State.

Marapharm Ventures, which trades on the Canadian Securities Exchange, the Frankfurt Stock Exchange, and the over-the-counter market in the United States, said it plans to complete the acquisition of the licenses by or before April 29.

It did not reveal the name of the business that owns the licenses.

The acquisition agreement is for $1.5 million, which includes $1.3 million in cash plus $200,000 in treasury shares.

One license is for a 21,000-square-foot cultivation site, while the processing business is located in a 28,000-square-foot facility.

The company has an option to purchase a license for a 9,000-square-foot cultivation site as well.

Vancouver-based Marapharm is also in negotiations to buy all of the properties owned by the Washington State company, which includes the two cultivation sites and the processing site as well as several other buildings, for $4.5 million.

Marapharm also has a cultivation site in Las Vegas and is working on projects in Denver and California.

3 comments on “Canadian MMJ Company to Expand U.S. Footprint
  1. Sam Znaimer on

    Under WA state law all equity owners in dispensaries and cultivation facilities must be state residents. So how does a publicly-traded corporation based in Canada and traded on a German stock exchange get to own WA state licenses ???

    Reply
    • CF on

      “The terms of the agreement to acquire the Interests are from a third party acting as agent and a Washington State resident acting as a finder. ” I went to MaraPharm website to pull press release. This is how they are trying to obtain approval. This will be interesting to see if the Liquor Control Board will sign off on this structure. If they do it will open the doors for more institutional investment. Unil the license is approved I would be cautious to invest.

      Reply
    • Marianne Bays on

      Oregon’s residency requirement for majority ownership of cannabis businesses was recently repealed. Outside investment is now allowed.

      Reply

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