Quebec-based cannabis producer Cannara Biotech (TSX: LOVE) has announced that its acquisition of Medican Organic Inc has now been finalised.
The $2.8m all-cash transaction sees Cannara acquire all outstanding shares of Medican, a wholly owned subsidiary of BZAM Ltd., following Medican’s emergence from Companies’ Creditors Arrangement Act (CCAA) proceedings involving its parent company BZAM Ltd., which had previously traded as The Green Organic Dutchman
The deal completes a long-running acquisition process which began in June 2021, when Cannara acquired Medican’s Valleyfield cultivation and manufacturing facility.
The fresh transaction folds Medican’s operational expertise, including refined cultivation procedures, post-harvest practices and proprietary extract manufacturing into Cannara’s day-to-day operations, alongside its physical assets.
Cannara operates two huge facilities in Quebec spanning more than 1.6m square feet with 100,000 kg of annualised cultivation capacity, and currently holds the number-one retail market share in the province.
The transaction is small by recent multi-state operator standards but strategic, removing a residual structural overhang from a foundational deal struck five years ago.
It also lands as Canadian licensed producers continue to consolidate cultivation capacity at the lower end of the market, where distressed assets are changing hands at a fraction of their original valuations.
As a core example of this dynamic, when Cannara acquired Medican’s Valleyfield cultivation facility, it carried a price tag of $27.
In a separate announcement, Cannara confirmed Nicholas Sosiak, who has served as Chief Financial Officer since 2020, has transitioned to Chief Operating Officer effective 23 April. “Nicholas has been an integral part of Cannara’s growth and financial foundation,” said founder and CEO Zohar Krivorot, adding that his execution track record made him “the ideal leader to take on this new role.”
Also in M&A this week: US accounting firm Aprio confirmed the acquisition of Phoenix-based Price Kong, marking its formal entry into cannabis sector advisory work and adding meaningful Arizona scale. Separately, ACE Venture completed its 51% acquisition of Vireo Health New York, creating a new majority-owned consumer-facing cannabis brand in the state.
Read the latest cannabis M&A news on Business of Cannabis.
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The $2.8m all-cash transaction sees Cannara acquire all outstanding shares of Medican, a wholly owned subsidiary of BZAM Ltd., following Medican’s emergence from Companies’ Creditors Arrangement Act (CCAA) proceedings involving its parent company BZAM Ltd., which had previously traded as The Green Organic Dutchman
The deal completes a long-running acquisition process which began in June 2021, when Cannara acquired Medican’s Valleyfield cultivation and manufacturing facility.
The fresh transaction folds Medican’s operational expertise, including refined cultivation procedures, post-harvest practices and proprietary extract manufacturing into Cannara’s day-to-day operations, alongside its physical assets.
Cannara operates two huge facilities in Quebec spanning more than 1.6m square feet with 100,000 kg of annualised cultivation capacity, and currently holds the number-one retail market share in the province.
The transaction is small by recent multi-state operator standards but strategic, removing a residual structural overhang from a foundational deal struck five years ago.
It also lands as Canadian licensed producers continue to consolidate cultivation capacity at the lower end of the market, where distressed assets are changing hands at a fraction of their original valuations.
As a core example of this dynamic, when Cannara acquired Medican’s Valleyfield cultivation facility, it carried a price tag of $27.
In a separate announcement, Cannara confirmed Nicholas Sosiak, who has served as Chief Financial Officer since 2020, has transitioned to Chief Operating Officer effective 23 April. “Nicholas has been an integral part of Cannara’s growth and financial foundation,” said founder and CEO Zohar Krivorot, adding that his execution track record made him “the ideal leader to take on this new role.”
Also in M&A this week: US accounting firm Aprio confirmed the acquisition of Phoenix-based Price Kong, marking its formal entry into cannabis sector advisory work and adding meaningful Arizona scale. Separately, ACE Venture completed its 51% acquisition of Vireo Health New York, creating a new majority-owned consumer-facing cannabis brand in the state.
Read the latest cannabis M&A news on Business of Cannabis.
The post Cannara Biotech Acquires Medican Organic in $2.8m Deal, Cementing Quebec Cultivation Footprint appeared first on Business of Cannabis.
Continue reading...
