Abattis Bioceuticals Corp. (OTC: ATTBF), a specialty biotechnology company focused on cultivating, licensing, and marketing proprietary ingredients, bio-similar compounds, patented equipment, and consulting services to medicinal marijuana markets in North America, recently announced a share exchange agreement between its Northern Vine subsidiary and Experion Biotechnologies Inc.
Under the fair and equal value exchange agreement, Abattis Bioceuticals gained a 25% stake in Experion – who is in the late stages of an MMPR application to become a Licensed Producer in Canada – by trading a 25% stake in its privately-held subsidiary Northern Vine. The move adds to the “Grow” component of Abattis Bioceuticals GDERS (“Grow, Dry, Extract, Refine, Science/Sell”) business model.
Canada transitioned from its old Marihuana Medical Access Regulations (“MMAR”) to Marihuana for Medical Purposes Regulations (“MMPR”) on April 1, 2014. The move will force 40,000 Canadian medical marijuana users to begin purchasing product from Licensed Producers rather than from the government or growing it on their own in their homes in order to tighten the market’s regulation.
The MMPR will also greatly expand access to the drug for medical purposes. In fact, Health Canada expects the number of medical marijuana users to grow to 450,000 with the market reaching $1.3 billion in size by 2024. There are only 12 approved Licensed Producers right now with approximately 450 outstanding applications, although the barriers to entry are very high leading to many denials.
“This is a strategic partnership that links our pending Controlled Substance License to another MMPR Application in order to further expand our business potential,” said Abattis Bioceuticals President and CEO Mike Withrow. “This agreement provides the company with more control of a broader variety of raw materials, for products derived from marijuana, to be processed at our planned botanical facility in Quebec. This partnership also creates synergy by joining cultivation with formulation sciences.”
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