Mar­i­cann en­ters into a non-bind­ing LOI to ac­quire li­cence in Malta

The Malta Business Weekly - - FRONT PAGE -

Mar­i­cann Group Inc. has an­nounced that it has en­tered into a non-bind­ing LOI to ac­quire 100% of the is­sued and out­stand­ing shares of Med­i­can Hold­ings Ltd of Malta. Med­i­can Re­search Group, a sub­sidiary of Med­i­can, is one of six com­pa­nies ap­proved to re­ceive a li­cence in Malta. This li­cense will give Mar­i­cann the abil­ity to im­port, ex­tract, man­u­fac­ture fin­ished dose prod­ucts, and dis­trib­ute cannabis for med­i­cal pur­poses within Malta and the Euro­pean Union. Pur­suant to the terms of the let­ter of in­tent, if the trans­ac­tion is com­pleted, Mar­i­cann will pay $10.1m com­prised of $7.6m in com­mon shares with a deemed price of not less than $2.35, and $2.5m in cash.

Com­ple­tion of the ac­qui­si­tion re­mains sub­ject to com­ple­tion of due dili­gence, ob­tain­ing ap­pli­ca­ble reg­u­la­tory ap­provals and ne­go­ti­a­tion of the de­fin­i­tive agree­ments.

If com­pleted, the ac­qui­si­tion of Med­i­can is ex­pected to ad­vance the com­pany’s ef­forts in the im­port of raw ma­te­ri­als and whole plant ex­tracts from Canada to Malta for ad­vanced post pro­cess­ing to cre­ate pure cannabis dis­til­lates, al­low­ing for true phar­ma­ceu­ti­cal man­u­fac­tur­ing.

Com­mer­cial pro­duc­tion of dis­til­lates (THC, CBD, CBG and con- ver­sion for CBN) in Malta, which Mar­i­cann will then man­u­fac­ture into fin­ished dose prod­ucts us­ing its pro­pri­etary Ve­siSorb drug de­liv­ery tech­nol­ogy, is a key devel­op­ment for the com­pany as it ad­vances the time­line for de­liv­ery of its full suite of prod­ucts to the Euro­pean mar­ket (where le­gal).

The prod­ucts (de­scribed be­low) have been de­vel­oped by Source One in con­junc­tion with Ve­siFact and made avail­able to Mar­i­cann.

The Source One/Ve­sisorb Prod­uct Suite in­cludes: Wa­ter Sol­u­ble Pow­der, Top­i­cal Lo­tion For­mu­la­tions, Sprays & Tinc­tures, Func­tional Drinks & Bev­er­ages, and SoftGel & Liq­uid Filled Cap­sules.

“As we tran­si­tion our phar­ma­ceu­ti­cal busi­ness to Eu­rope, the Gov­ern­ment of Malta and Malta En­ter­prise have been en­gaged in un­der­stand­ing the re­quire­ments of our busi­ness for suc­cess and the need to move to true phar­ma­ceu­ti­cal pro­duc­tion; com­bin­ing ac­tive phar­ma­ceu­ti­cal in­gre­di­ents with ex­cip­i­ents to cre­ate true phar­ma­ceu­ti­cal cannabis. Malta pos­sesses key tal­ent who are trained in fin­ished dose man­u­fac­tur­ing, and has an ex­ist­ing base of phar­ma­ceu­ti­cal pro­duc­tion that we will ex­pect to en­gage as we move for­ward. We also plan to im­port API from our Haxxon op­er­a­tion in Switzer­land, pro­vid­ing mul­ti­ple sources of prod­uct to en­sure ro­bust prod­uct sup­ply,” stated Ben Ward, CEO.

Mar­i­cann is a ver­ti­cally in­te­grated pro­ducer and dis­trib­u­tor of mar­i­juana for med­i­cal pur­poses. The com­pany was founded in 2013 and is based in Burling­ton, On­tario, Canada and Mu­nich, Ger­many, with pro­duc­tion fa­cil­i­ties in Lang­ton, On­tario where it op­er­ates a medic­i­nal cannabis cul­ti­va­tion, ex­trac­tion, for­mu­la­tion and dis­tri­bu­tion busi­ness un­der fed­eral li­cence from the Gov­ern­ment of Canada.

The com­pany also has pro­duc­tion op­er­a­tions in Dres­den, Sax­ony, Ger­many and Re­gens­dorf, Switzer­land. Mar­i­cann is cur­rently un­der­tak­ing an ex­pan­sion of its cul­ti­va­tion and sup­port fa­cil­i­ties in Canada in a 942,000 sq. ft. and will con­tinue to pur­sue new op­por­tu­ni­ties in Eu­rope.

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