International cannabis firm Scythian Biosciences is poised to enter Florida’s medical cannabis market through an acquisition valued at 136.5 million Canadian dollars ($105 million).
The Toronto-based firm, which has investments and partnerships in South America, the Caribbean, Europe and the U.S., signed a letter of intent to acquire CannCure Investments, according to a news release.
Under terms of the deal, Scythian will initially buy 70% of CannCure for CA$93.3 million in equity and CA$43.2 million in cash. The option to purchase the remaining 30% will be paid in cash or shares, valued at CA$58.5 million.
The company will also be renamed Sol Global Investments Corp.
CannCure is in the process of acquiring two Florida-based operations:
- The Healthcare Organization, a Florida-based wellness firm that operates six medical clinics across the state with plans to roll out 12 more in the coming year.
- 3 Boys Farm, a licensed cultivator of medical marijuana. The farming operation has leases for cannabis dispensaries it expects to open in Fort Lauderdale, West Palm Beach, North Miami Beach, Hollywood, Tampa and Jacksonville, according to the announcement.
Scythian’s acquisition is contingent on CannCure completing its purchase of the two Florida companies.
The cash payment to CannCure is expected to come from the sale of assets in Argentina, Colombia and Jamaica to Aphria – a deal announced in June that’s slated to close at the end of September.
If all goes as planned, Scythian said it expects the CannCure deal to close by Oct. 15.
In connection with the deal, Scythian will voluntarily delist its common shares (SCYB) from the TSX Venture Exchange. The firm has received conditional approval to list on the Canadian Securities Exchange.