Canadian cannabis company to pay $1.6M for California dispensary
A Canadian marijuana company has entered into an agreement to buy a privately owned medical cannabis dispensary in California for $1.6 million (CA$2 million), the latest sign that interest in American MJ assets is slowly picking up in Canada.British Columbia-based Marapharm put down a cash deposit of $160,000 for Green Leaf Wellness in Desert Hot Springs, according to a news release.
Another $1.44 million is payable on the closing of the deal, which is expected by the end of the year.
Marapharm – traded on the Canadian Securities Exchange (CSE) under the symbol MDM– already owns cultivation properties close to the Green Leaf Wellness location.
Green Leaf Wellness’ leased space in a strip mall consists of 3,200 square feet of retail space and 3,000 square feet of unused cultivation space.
Here’s what you need to know:Marapharm plans to use the cultivation space, which it says is licensed. Green Leaf Wellness nets about $35,000 per month from sales. Green Leaf Wellness will become a division of Marapharm. Canadian companies on the CSE are allowed to own American marijuana assets as long as they disclose risks to investors. Canadian companies on the Toronto Stock Exchange and TSX Venture are not allowed to own cannabis assets in the United States. Other Canadian companies on the CSE, such as Ottawa’s CannaRoyalty Corp. (CRZ), are heavily invested in the American market.
Matt Lamers can be reached at [email protected]
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