CannaPharmaRx (OTC:CPMD) announced that it has acquired Ontario, Canada-based Alternative Medical Solutions, a late stage marijuana licensed producer applicant in Canada currently operating in the pre-license inspection and licensing phase.
Under the terms of the deal, CannaPharmaRx subsidiary Hanover CPMD Acquisition Corp. bought all of the issued and outstanding securities of Alternative Medical Solutions for C$12.71 million, consisting of cash, common stock, and a promissory note.
Alternative Medical Solutions is currently operating in the pre-license inspection and licensing phase, which is Stage 5 of 6, with a fully approved license. Upon final construction of the Alternative Medical Solutions cultivation facility, Health Canada will inspect the facility and relevant operating procedures to ensure it meets the required standards. Upon completion of the licensing stage, Alternative Medical Solutions should receive approval from Health Canada to begin cultivation of marijuana.
The purpose-built Alternative Medical Solutions property, acquired by CannaPharmaRx in the acquisition, includes 48,750 square feet of cultivation infrastructure contained within 6.7 acres of land in Hanover, Ontario Canada. The facility’s exterior is complete. However, construction of the modern interior has not yet commenced. The finished production facility will include 20 individual state-of-the-art grow rooms that are expected to maintain an annual production capacity of 9,500 kilos of marijuana.
Completion of the facility is expected to take an estimated 20 weeks. Together with the remaining equipment needed to complete the expansion, management estimates CannaPharmaRx will require approximately C$12.2 million in additional financing.
CannaPharmaRx was originally incorporated in Colorado in August 1998. In April 2010, the company reincorporated, and in October 2014, it changed its legal name to CannaPharmaRx. At that time, the company became an early-stage pharmaceutical company whose purpose was to advance cannabinoid research and discovery using proprietary formulation and drug delivery technology then under development. In April 2016, the company ceased operations, and until the acquisition of Alternative Medical Solutions, the company was dormant.