Canadian Bioceutical Corp. (TSXV:BCC) announced that it has entered into a Letter of Intent to acquire a medical marijuana company in Las Vegas, which has been granted a provisional cultivation license and a provisional production license by the state’s Division of Public and Behavioural Health.
As quoted in the press release:
Approval of the sale of marijuana for recreational use in Nevada is scheduled to be on the ballot in next year’s November voting with a widespread expectation of acceptance.
The LOI is conditional on agreement of closing documentation, BCC securing adequate financing, confirmation of the transferability of the licenses by the State and approval of the Board of Directors of BCC. To facilitate a more rapid ramp-up of production, BCC will enter into management agreements assuming full operational control of each license pending formal approval of the acquisitions by the state.
Additional details in relation to BCC’s plan to enter into the medical marijuana sector may be found in the company’s two (2) News Releases of January 7, 2015 with the most recent updates provided in BCC’s News Release of May 11, 2015 and Jul 8, 2015.
Scott Boyes, CEO of Canadian Bioceutical, commented:
We believe this acquisition will represent a new milestone in our Company’s plan to become a significant participant in the North American medical marijuana industry. Nevada has been particularly progressive in the development of its medical marijuana (“MMJ”) regulations and there is a very optimistic outlook for growth of the industry in the state. Of particular note is the reciprocity offered to out-of-state medical marijuana card holders. With over 40 million people visiting Las Vegas every year, Nevada’s policy of recognizing the status of patients from other justictions significantly enhances the potential size of the MMJ market in the state.