CannaPharmaRX Inc. completed its C$12.7 million acquisition of Ontario-based Alternative Medical Solutions Inc., a late-stage marijuana licensed producer applicant.
Under the terms of the deal, CannaPharmaRX unit Hanover CPMD Acquisition Corp. acquired all of Alternative Medical's issued and outstanding securities, with the total consideration consisting of cash, common stock and a promissory note.
Alternative Medical is operating in the pre-license inspection and licensing phase. Upon final construction of the company's cultivation facility, Health Canada will inspect the facility and relevant operating procedures to ensure it meets the standards, which have been approved in the application.
Upon completion of the licensing stage, Alternative Medical should receive approval from Health Canada to begin marijuana cultivation. CannaPharmaRX has acquired the cultivation facility as part of the deal.
California-based CannaPharmaRX said in Jan. 8 news release that the completion of the facility is expected to take about 20 weeks. It added that the completion of the facility requires about C$12.2 million in additional financing.
The company said it does not have a firm commitment for the financing but expressed optimism that it will be able to raise these funds.
CannaPharmaRX, an early-stage pharmaceutical company focused on advancing cannabinoid research and discovery, said the acquisition provides it a licensed producer platform to enter the global marijuana segment. It also expects to proactively seek additional business opportunities with other companies operating in the legal cannabis sector in Canada and other jurisdictions where cannabis has been deemed legal.