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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