Toronto (pcj News Briefs) – The Canadian Bioceutical Corporation (CSE: BCC; OTCPK: CBICF), further to its press release of February 6, 2017, has completed the acquisition of the assets from PerkAZ Property LLC, an Arizona registered company active in the cannabis space.
The transaction includes a Management Agreement with Healing Center Wellness Center LLC (THC), a licensee under the Arizona Medical Marijuana Act (AMMA), as well as 44.3 acres of land in Chino Valley, Arizona.
Transaction Highlights:
- New dispensary to be established under the successful Health for Life (H4L) brand in the Greater Phoenix Area (GPA).
- Property included in the transaction is located adjacent to Big Chino aquifer, providing free access to water, making this a valuable asset for multiple purposes. The property has been appraised at US $1.5 million.
- Attractive valuation at US$4 million: US$3 million in cash; US $1 million in stock, issued at $0.75 per share.
“Developing the new dispensary license by leveraging our successful H4L and MPX brands will add further strength to our already highly profitable platform,” said Scott Boyes, President and CEO of BCC. “The ability to relocate this license to a relatively under-served area in the GPA, combined with the value of the Chino Valley property, makes this a very attractive transaction at the consideration paid. Our operational track record and proven access to capital make us a very attractive partner, putting us in a strong position to aggressively pursue further growth, both organically and through acquisitions.”
“As the total number of dispensaries permissible in Arizona is capped at one per ten licensed pharmacies, the market remains tightly controlled. We see this reflected in market prices for cannabis, which remain strong, both for high quality flower and concentrates. The new dispensary will benefit from our strong brand recognition and proven marketing capabilities. At the same time, we are adding production capacity in the Mesa area, which will enable us to serve the new dispensary with product, as well as expand the market share of our wholesale brand MPX,” added Beth Stavola, President of BCC’s U.S. operations.
The Canadian Bioceutical Corporation, an Ontario corporation, through its wholly owned subsidiaries in the U.S., provides management, staffing, procurement, advisory, financial, real estate rental, logistics and administrative services to two medicinal cannabis enterprises in Arizona. It also leases a property in Owen Sound, Ontario, for which an application to Health Canada has been made for a cannabis production and sales license.