Canada's Maricann Group Inc. signed a nonbinding letter of intent to acquire Malta's Medican Holdings Ltd. for US$10.1 million in cash and stock.

The transaction price will comprise US$7.6 million in common shares and US$2.5 million in cash, to be paid when the transaction closes.

A Medican unit is approved to receive a license in Malta. Maricann, which is transitioning its pharmaceutical business to Europe, said the license will allow it to import and make finished dose products and distribute medical cannabis in Malta and the EU.

The proposed acquisition is subject to completion of due diligence, obtaining applicable regulatory approvals and negotiation of the definitive agreements.