Marapharm Ventures Inc. (MRPHF) announced that it has entered into a Letter of Intent dated June 21, 2018 to purchase all the shares of Full Spectrum Medicinal Inc. Marapharm will have until September 30, 2018, to conduct due diligence on Full Spectrum, with a view to negotiating the terms of a definitive agreement in order to complete the transaction. The company did not provide a valuation for the proposed transaction.
Marapharm’s plan is to merge the privately-owned Full Spectrum Medicinal (FSM) Licensed Producer application with Health Canada. According to the company statement, the goal would be to become one of the best organic cannabis Licensed Producers specializing in premium flower on a commercial scale, saying that it would set a new standard for quality, cost of production and profit. The company went on to add, that unlike, Canada’s existing 84 Licenced Producers, Management’s “organic” focus and strategic model would be to build long-term value by increasing the portfolio and penetrating the legal cannabis space with flower, oils, and edibles in a fast-growing market.
The press release stated that “The business plan would be to rapidly expand with the development of standardized engineered bio-secure facilities. These are optimum-sized, state-of-the-art and scalable buildings. The efficient design reduces energy and subsequently the cost of cultivation. This allows for indoor grown quality cannabis at close to sun-grown crop costs. The first rapid assembly building is scheduled for delivery to the approved site, close to Salmon Arm, British Columbia.”
Marapharm is a publicly traded company investing in the medical and recreational cannabis space, since 2014. Marapharm has rapidly expanded to include having cultivation, production and dispensary locations in the key North American states of Washington, Nevada, and California and are seeking expansion opportunities worldwide. Marapharm stock was lately trading at 25 cents on the OTC Markets and 35 Canadian cents on the Canadian Stock Exchange.
On June 20, 2018, Prime Minister Justin Trudeau announced that October 17, 2018, will be the date that marijuana will be legal across Canada.