On April 23, 2019, SOL Global, one of the leading medical cannabis companies in Florida, signed a binding letter of intent with Merida Capital Partners to acquire MCP Wellness, Inc., a subsidiary of Merida Capital.
The acquisition is worth $150 million, and it will see SOL Global take over the Michigan firm which is just about to acquire two licenses to cultivate cannabis as well as a license to process the cannabis and three more to dispense medical cannabis.
Additionally, MCP Wellness, Inc. has plans to establish nine provisioning (dispensing) centers by August this year if the municipalities approve their plans in time.
If all these plans go ahead as scheduled, SOL Global and Merida Capital Partners anticipate that the revenue of MCP Wellness, Inc. will exceed $61 million this year and grow to more than $121 million next calendar year (2020).
The acquisition of MCP Wellness, Inc. by SOL Global is expected to be concluded in May this year after the negotiation process, regulatory approval and other related requirements are met by both parties.
SOL Global owns a vertically integrated cannabis company in Florida called “3 Boys” through its subsidiary CannCure Investments Inc. SOL Global plans to fold MCP Wellness Inc. into 3 Boys and form a marijuana multi-state operator (MSO) called CannCure.
The letter of intent signed states that the purchase price of $150 million will not be fully paid in cash. Only $35 million will be paid in cash while the remaining $115 million will be in the form of equity in CannCure offered to Merida Capital Partners. This means that MCP will own a 42 percent stake in the new multi-state operator.
After the acquisition, the 110,000-square foot MCP Wellness Inc. cultivation facility in Michigan will be retrofitted so that CannCure can have added capacity to meet the rapidly growing demand for medical cannabis in Michigan.
Meanwhile, 3 Boys will also continue its own expansion drive within Florida. The company has already got the nod from the Office of Medical Marijuana and the Department of Health in Florida to start processing and provisioning medical marijuana products at their new facility in Indiantown, Florida.
SOL Global and Merida Capital Partners intend to spread their wings in other states as well. For example, SOL Global may soon finalize its plans to acquire a major cultivator and processer in California. Once that deal is concluded, SOL Global wants to take the multistate operator public on an exchange in Canada.
Choom Holdings Inc. (CSE: CHOO) (OTCQB: CHOOF) and ChineseInvestors.com Inc. (OTCQB: CIIX) congratulate SOL Global and Merida Capital upon the massive strides that they are taking to increase their footprint within the cannabis industry.
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