Canadian-based ABcann Global Corp. (ABCCF) is acquiring medical marijuana clinic Harvest Medicine for approximately C$3 million. ABcann is a cultivator that holds production and sales licenses under the Canadian medical marijuana program. Harvest Medicine is an education-focused, customer-centric medical marijuana clinic that has added 8,500 patients since opening in February of this year.
Under the terms of the agreement, ABcann will pay Harvest Medicine C$1.5 million in cash and issue shares valued at roughly C$1.5 million based on a C$1.42 share price of ABcann stock. If certain milestones are met, there could be additional payments in the form of cash or stock.
“Harvest Medicine is a great partner for us, and the Acquisition will be immediately accretive to our shareholders,” said Barry Fishman, ABcann’s CEO. “Their professional, patient-focused approach is aligned with ABcann’s philosophy of quality and innovation. This represents one initial step of many as we begin the execution of our aggressive growth strategy.”
ABcann has also committed to investing $1,500,000 in expanding Harvest Medicine to several new clinics. Patients will remain on an open platform and can register with their licensed producer of choice.
In a statement, the company said that Harvest Medicine founder and CEO, Shekhar Parmar, is expected to join ABcann’s executive team as Chief Strategy Officer and remain CEO of HMED. Mr. Parmar, a lawyer and entrepreneur, brings to ABcann extensive knowledge of the medical cannabis market and a unique perspective on patient needs.
Parmar said, “Harvest Medicine was fortunate to have our choice of partners to help us grow and take the steps required to bring our patient-centric model to Canadians from coast-to-coast. ABcann impressed us with their quality focus and entrepreneurial culture. I look forward to joining ABcann’s executive team as Chief Strategy Officer, and to continuing in the role of CEO of Harvest Medicine as we scale-up our proven business model.”
ABCann shares were lately trading at $1.11, down from the company’s 52-week high of $1.42.