Maricann Enters into a non-binding LOI to acquire License in Malta
TORONTO, May 16, 2018 (GLOBE NEWSWIRE) — Maricann Group Inc. (CSE:MARI) (FRANKFURT:75M) (OTCQB:MRRCF) (“Maricann” or the “Company”), is pleased to announce that it has entered into a non-binding LOI to acquire 100% of the issued and outstanding shares of Medican Holdings Ltd (“Medican”) of the Republic of Malta. Medican Research Group, a subsidiary of Medican, is one of six companies approved to receive a license 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 USD$10.1MM comprised of USD$7.6MM in common shares with a deemed price of not less than $2.35, and USD$2.5MM 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 conversion 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 (“API”) with excipients to create true pharmaceutical cannabis.
Ben Ward, CEO of Maricann
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.
About Maricann Group Inc.
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. (87,515 sq. m) and will continue to pursue new opportunities in Europe.