Heritage Cannabis acquired privately-held, Ontario-based Cannacure Corporation earlier this week, closing out the deal only a few weeks after the company’s initial announcement in October. Cannacure Corp. is a Canadian Licensed Producer operating over 100,000 million square feet of medical marijuana greenhouse space. According to a statement, the deal includes an option to acquire an additional 3.4 million square feet in the future.
The acquisition gives Heritage Cannabis a possible six million square feet of grow space, which could be operational by the first quarter of 2019, pending the receipt of the appropriate licenses from Health Canada. And while it’s unclear yet when Cannacure’s crop will be ready, the company recently completed Phase One of a build-out on a former GMP facility. Heritage intends to move forward with this construction to accommodate the expected growth of both the company and the industry.
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“This is a significant milestone for our company with our growth and expanded footprint,” said Clint Sharples, Chairman and interim CEO of Heritage in a statement. “We believe this cornerstone asset uniquely positions us to expand our potential extraction business across Canada, satisfy potential targeted partnerships, and ensure we have flexible space and capacity to evolve with a rapidly growing market environment.”
Heritage Cannabis acquired Cannacure Corp. for $40 million in an all-share transaction. Four million common shares were issued to an unnamed third party and will remain in holding for four months, ending on March 6 of next year.
A new CEO at the helm
Sharples is standing in as Heritage’s interim CEO since Jagdip Bal resigned from his position with the company in September. Bal, who left the company to pursue other opportunities, remains with Heritage as a consultant for the next year.
"Heritage would like to thank Mr. Bal for his contribution to the company over the past five years," said Sharples in a statement at the time of Bal’s resignation. "His efforts have helped create significant shareholder value, and he leaves Heritage with a bright future. I am personally grateful that he has agreed to remain as a consultant to the company, and I wish him every success in the future on his new [endeavors]."
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Sharples, in the interim, wasted no time keeping the company moving forward. Two weeks after Bal’s resignation, Heritage announced their intent to acquire Purefarma Solutions Inc., a CBD oil manufacturer and producer in British Columbia that gives the company potential access to international markets.
The deal was a strategic move by Sharples, bringing the company into the lucrative, billion-dollar CBD market.
"As many in this industry have realized, the extraction business is exciting yet difficult to execute,” said Sharples in a statement. “By adding the experts from Purefarma, a team of recognized industry leaders in the extraction business, we have provided Heritage and its subsidiaries a platform to position itself on the global stage, and move us into a whole new phase.”