Medican Enterprises Inc. (OTC: MDCN), a leading developer, distributor, and marketer of pharmaceutical grade cannabis, recently announced that its joint venture partner International Herbs Medical Marijuana Ltd. (“IHMML”) signed an agreement to purchase a 400,000 square foot facility in New Brunswick, Canada for the purposes of growing medical cannabis.
The large-scale production facility is being upgraded to meet Health Canada’s requirements for security, quality, assurance, and clinical requirements. After the upgrades are complete, the facility will have a Level 10 security rating defined by the Province in New Brunswick. A total of $5 million in retrofitting contracts have been issued as IHMML has already taken control of the property.
“This is a tremendous milestone in our development,” said Ken Williams, CEO of Medican Enterprises Inc. “A facility of this size establishes Medican as a large-scale medical marijuana producer, enables us to rapidly enter the market and capitalize on the increasing market demand. We are pleased by the support given by both the county of Restigouche and the province of New Brunswick.”
In addition to the 400,000 sqft facility, IHMML has contracts to purchase a ~300,000 sqft facility in Pokemoush, New Brunswick that has the potential to expand to 600,000 sqft, as well as a 25,000 sqft facility in Delta, British Columbia. These facilities could be leveraged to make IHMML one of the largest medical cannabis producers in Canada under the new MMPR.
Health Canada predicts that MMPR will generate roughly $1.3 billion in annual sales by 2024, driven by a patient population that’s expected to jump from 40,000 patients in the MMAR program today to upwards of 400,000 patients. More than 5,000 doctors have prescribed medical cannabis in the past to patients, suggesting a broad acceptance of the drug in the medical community.
Shares of Medican Enterprises Inc. jumped about 4% in early trading following the news and are trading up over 760% so far this year.
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