Recent New York medical marijuana licensee agrees to sale

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A company that just this month won a license to grow and sell medical marijuana in New York is about to change ownership.

Citiva Medical – one of five companies to receive MMJ licenses in early August – is in the process of being acquired by iAnthus Capital Holdings, the Albany Times-Union reported.

The acquisition must be approved by New York regulators and the Canadian Securities Exchange (CSE), according to the newspaper.

CSE approval is needed because iAnthus – which has offices in New York and Canada – trades on that exchange under the ticker symbol IAN.

If the sale goes through, iAnthus will obtain New York licensee Citiva Medical and Citiva USA for $18 million, the Times-Union reported. The transaction includes $3.6 million in cash and $14.4 million in iAnthus shares priced at $2.40 per share.

The holding company’s Toronto and New York offices raise capital to finance Canadian marijuana businesses and American cannabis companies, respectively.

In announcing the deal, iAnthus also said it’s no longer seeking to acquire Valley Agriceuticals, which obtained its New York MMJ license at the same time as Citiva Medical, according to the newspaper.

Once iAnthus takes ownership of Citiva Medical, the dispensary will become the second MMJ licensee in New York to change hands.

In January, California-based MedMen purchased Bloomfield Industries, one of the state’s original five MMJ licensees.

A total of 10 companies are licensed in New York to grow and sell medical cannabis, and each is permitted to open four dispensaries.