Maricann Enters into a non-binding LOI to acquire License in Malta

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.

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