TORONTO, May 16, 2018 (GLOBE NEWSWIRE) -- Maricann Group Inc. (CSE:MARI) (FRANKFURT:75M) (OTCQB:MRRCF) (“Maricann” or the “Company”), is pleased to announce that it has entered into a non-binding LOI to acquire 100% of the issued and outstanding shares of Medican Holdings Ltd (“Medican”) of the Republic of Malta. Medican Research Group, a subsidiary of Medican, is one of six companies approved to receive a license in Malta. This license will give Maricann the ability to import, extract, manufacture finished dose products, and distribute cannabis for medical purposes within Malta and the European Union. Pursuant to the terms of the letter of intent, if the transaction is completed, Maricann will pay USD$10.1MM comprised of USD$7.6MM in common shares with a deemed price of not less than $2.35, and USD$2.5MM in cash.
Completion of the acquisition remains subject to completion of due diligence, obtaining applicable regulatory approvals and negotiation of the definitive agreements.
If completed, the acquisition of Medican is expected to advance the Company’s efforts in the import of raw materials and whole plant extracts from Canada to Malta for advanced post processing to create pure cannabis distillates, allowing for true pharmaceutical manufacturing. Commercial production of distillates (THC, CBD, CBG and conversion for CBN) in Malta, which Maricann will then manufacture into finished dose products using its proprietary VesiSorb drug delivery technology, is a key development for the Company as it advances the timeline for delivery of its full suite of products to the European market (where legal). The products (described below) have been developed by Source One in conjunction with VesiFact and made available to Maricann.
The Source One/Vesisorb Product Suite includes:
“As we transition our pharmaceutical business to Europe, the Government of Malta and Malta Enterprise have been engaged in understanding the requirements of our business for success and the need to move to true pharmaceutical production; combining active pharmaceutical ingredients (“API”) with excipients to create true pharmaceutical cannabis. Malta possesses key talent who are trained in finished dose manufacturing, and has an existing base of pharmaceutical production that we will expect to engage as we move forward. We also plan to import API from our Haxxon operation in Switzerland, providing multiple sources of product to ensure robust product supply,” stated Ben Ward, CEO.
Forward Looking Statements
This news release includes forward-looking information and statements, which may include, but are not limited to, information and statements regarding or inferring the future business, operations, financial performance, prospects, and other plans, intentions, expectations, estimates, and beliefs of the Company. Such statements include statements regarding the proposed acquisition of Medican and its plans with respect to such acquisition. Forward-looking information and statements involve and are subject to assumptions and known and unknown risks, uncertainties, and other factors which may cause actual events, results, performance, or achievements of the Company to be materially different from future events, results, performance, and achievements expressed or implied by forward-looking information and statements herein. Although the Company believes that any forward-looking information and statements herein are reasonable, in light of the use of assumptions and the significant risks and uncertainties inherent in such information and statements, there can be no assurance that any such forward-looking information and statements will prove to be accurate, and accordingly readers are advised to rely on their own evaluation of such risks and uncertainties and should not place undue reliance upon such forward-looking information and statements. Any forward-looking information and statements herein are made as of the date hereof, and except as required by applicable laws, the Company assumes no obligation and disclaims any intention to update or revise any forward-looking information and statements herein or to update the reasons that actual events or results could or do differ from those projected in any forward looking information and statements herein, whether as a result of new information, future events or results, or otherwise, except as required by applicable laws.
Director of Investor Relations
Corporate Headquarters (Canada)
Maricann Group Inc. (Toronto)
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