SOURCE: Canadian Cannabis Corp.

Canadian Cannabis Corp.

October 20, 2015 08:00 ET

Canadian Cannabis Corp. to Acquire Hydropothecary for $21.3 Million

OAKVILLE, ON--(Marketwired - Oct 20, 2015) - Canadian Cannabis Corp. (CCC) (OTC PINK: CCAN) plans to acquire Hydropothecary Corporation, a licensed producer of cannabis and cannabis oils and licensed distributor of Medicinal Marijuana under the Marijuana for Medical Purposes Regulations (MMPR - license link).

The parties have agreed to general terms, where CCC will pay a total consideration of $21.3 million in cash and stock ($28 million CAD) for 100% ownership in Hydropothecary. CCC has paid an initial $500,000 as a deposit, with the transaction expected to close on November 17, 2015.

Hydropothecary is the largest MMPR licensed landowner which operates a grow facility located on 65 acres in Gatineau, Quebec. The facility's flowering production area currently totals 7,500 sf. A 35,000 sf. structural expansion of the facility has been recently completed, with production in the expanded space planned to begin in the first quarter of 2016.

"This acquisition of Hydropothecary represents one of the most important milestones in our development," said Benjamin Ward, CEO of CCC. "In addition to allowing us to produce and distribute medical marijuana in Canada, the addition of an industry leader like Hydropothecary will allow us to deliver unparalleled products, service and customer convenience."

Management Structure
In addition to valuable physical assets and customers, the Hydropothecary acquisition will bring to CCC about 17 employees, including three seasoned executives who will be appointed to CCC senior leadership positions:

  • Sebastien St-Louis, co-founder and CEO of Hydropothecary, will be appointed president
  • Ed Chaplin, CFO of Hydropothecary, will be appointed CFO
  • Adam Miron, Hydropothecary's co-founder and chief brand officer, will be appointed chief marketing officer

St-Louis commented: "Together with the talented CCC team, we believe we can grow the company into the world's largest comprehensive medical marijuana provider, while continuing to provide our customers with the highest standards of quality and service."

Terms of the Acquisition
CCC has agreed to pay total consideration of $21.3 million, comprised of $6.0 million in cash and $15.3 million in Class A common stock. The transaction is expected to close on November 17, 2015. CCC has finance in place for the completion of the transaction through Backstop Holdings.

About The Hydropothecary Corporation
The Hydropothecary Corporation is the only licensed producer and distributor of medical marijuana in the Province of Quebec, Canada's second most populous Province, with 9 million people. The company is one of 26 location specific licenses to cultivate and one of only 18 with an authorization to sell cannabis under the Marijuana for Medical Purposes Regulations (MMPR) program. It holds one of only two licenses east of Ontario, and the company is one of the first companies to receive a license to produce cannabis oil. For more information, visit www.Hydropothecary.com.

About Canadian Cannabis
Using an education- and research-focused platform aimed at health-care providers and patients, Canadian Cannabis Corporation (CCC) provides the highest quality medical marijuana to help manage a range of specific medical conditions, as well as help patients obtain their monthly prescription in a simple, seamless and transparent way. For more information, visit www.canadiancannabiscorp.com.

Forward-looking Statements
All statements in this news release that are not based on historical fact are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. While management has based any forward-looking statements contained herein on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties, and other factors, many of which are outside of our control that could cause actual results to materially differ from such statements. Such risks, uncertainties, and other factors include, but are not necessarily limited to, those set forth under Item 1A "Risk Factors" in the companies' respective Annual Report on Form 10-K for the year ended December 31, 2014. We operate in a highly competitive and rapidly changing environment, thus new or unforeseen risks may arise. Accordingly, investors should not place any reliance on forward-looking statements as a prediction of actual results. We disclaim any intention to, and undertake no obligation to, update or revise any forward-looking statements. Readers are also urged to carefully review and consider the other various disclosures in the companies' respective Annual Report on Form 10-K, quarterly reports on Form 10-Q and Current Reports on Form 8-K.

Trademarks in this release are the property of their respective owners.

Contact Information

  • Investor Relations Contact:
    Ron Both
    Senior Managing Director
    Liolios Group, Inc.
    Tel 949-574-3860
    Email Contact