Another Failed Sale for Canadian Cannabis Producer Redecan Pharm

RedeCan-Pharm

Smaller licensed producers in Canada have tried to partner with publicly-traded companies in order to raise capital to compete with more established and better capitalized companies like Aphria, Canopy Growth, Mettrum and privately-held Tilray, but the strategy continues to prove difficult to execute.  Hydropothecary’s deal to be acquired by Canadian Cannabis Corp (OTC: CCAN) was terminated in January, though CCAN has yet to publicly acknowledge this.

Today, Alta Vista Ventures (CSE: AVV) reported that it was unable to provide the capital necessary to close its deal to acquire Redecan Pharm.  The company had first announced a transaction in November and then restructured the deal in January.  This is the second time that Redecan Pharm has failed to close a sale, having previously agreed to sell itself to another publicly-traded Canadian company, Abba Medix (CSE: ABA).

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Breaking News by Alan Brochstein, CFA
Alan Brochstein, CFA
Based in Houston, Alan leverages his experience as founder of online community 420 Investor, the first and still largest due diligence platform focused on the publicly-traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. At New Cannabis Ventures, he is responsible for content development and strategic alliances. Before shifting his focus to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst following over two decades in research and portfolio management. A prolific writer, with over 650 articles published since 2007 at Seeking Alpha, where he has 70,000 followers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, the Wall Street Journal, Fox Business, and Bloomberg TV. Contact Alan: Twitter | Facebook | LinkedIn | Email

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