TORONTO, Oct. 13, 2017 (GLOBE NEWSWIRE) — The Canadian Bioceutical Corporation (the “Company” or “BCC”) (CSE:BCC) (OTC:CBICF) today announced that, the Company, through its wholly-owned U.S. subsidiary CGX Life Sciences Inc., has entered into a definitive membership interest purchase agreement dated and effective October 11, 2017 to acquire 99% of the membership units of GreenMart of Nevada NLV, LLC (“GreenMart”), an award-winning licensed recreational and medical cannabis cultivation and production and wholesale business located in North Las Vegas, Nevada. Completion of the transaction is conditional on the approval of the Nevada Department of Taxation.
- Wholesale business selling dried flower and award-winning high-margin concentrates into the Nevada medical and adult use markets.
- Creates strong presence in Las Vegas adult use market with over 42 million visitors annually.
- Fully operational, fully staffed, state-of-the-art licensed production facility, with capacity to produce 1.6 million grams of dried flower and 85,000 grams of high-margin concentrate.
- Products include high-quality dried flower, high-margin concentrates, as well as edible and other high-margin infused products.
- In response to strong demand, wholesale prices in the Nevada market for dried flower have risen from US$700 per pound last year, to a current average price of $2,542 per pound or US$5.60 (~CA$6.97) per gram with prices up to US$2,850 per pound or US$6.27 (~CA$7.81) per gram for high-quality product (source: New Leaf Data Service).
- GreenMart has commenced selling wholesale into the Nevada medical cannabis market.
- GreenMart will be applying for at least one dispensary license to enter the higher-margin retail market.
- Arcview Market Research projects annual legal cannabis sales in Nevada to grow to an estimated US$630 million by 2020.
“This is a great acquisition at an attractive valuation, positioning us well in the burgeoning adult use market in Nevada, and we anticipate GreenMart to be accretive in the current financial year,” stated Scott Boyes, President and CEO of BCC. “To meet the strong demand in the local market, we are increasing cultivation and production capacity. Our partners at MJardin are moving into the facility, providing important operational capacity, as well as introducing new cultivation techniques to increase yield. Furthermore, upon positive conclusion of our trial program with RotoGro in Arizona, we anticipate implementing this higher-yielding and low-cost technology in our Nevada facility towards the end of the year.”
Beth Stavola, President of BCC’s U.S. operations, added, “We …