Marapharm Ventures Expanding Washington State Operations With Sun-Grown Production

CANADA: Marapharm Ventures has entered into a Letter of Intent and Definitive Agreements to expand its Washington State operations. In a press release, the company announced it has closed the foregoing transactions and acquired certain operational assets, land and water rights related to two licensed cannabis producers and processors operating in Tonasket, Washington.

Just South of the Canadian border in Central WashingtonTonasket is home to some of the world’s most productive orchards. This ideal climate sees approximately 300 days of sunshine a year providing a cannabis grow season that can last approximately 164 days.

The sun-grown season is currently underway in Tonasket. Sun-grown cannabis can be as terpene-rich as indoor, demonstrating the unique aroma and flavor profiles imparted by the culmination of various factors including growing location, soil, elevation and climate.

To take advantage of the sun-grown season, Marapharm is currently funding the preparation of the Property for this summer’s cultivation and fall harvest. All above-ground irrigation has been installed and growing areas constructed for both Licensees. The Licensees have also secured all necessary operating permits and approvals needed to bring cannabis plants on site starting the last week of May.

In addition, the Licensees have secured the services of Mr. Ian Dykstra to manage the day-to-day operations of the Licensees. Mr. Dykstra is a master grower who has extensive cannabis growing experience and owns his own cannabis production license. He recently won “Best Light Dep Flower – THC” at Sun Cup 2018. To date, Mr. Dykstra has ensured preparations at the Property are under budget and on schedule.

The Licensees will cultivate up to 40,000 sq. ft. of cannabis plant canopy. Marapharm anticipates to be processing this sun-grown cannabis product at the licenced facility located in Lynden, Washington.

“We are excited to assist our Washington partners commence planting and growing in Tonasket. For the “cannassieur,” it is the experience of seeking unique nuances of flavor imparted by the earth which can be detected in sun-grown cannabis”Linda Sampson, CEO

M&A Activity Heats Up In The Cannabis Industry

NEW YORK: Merger and acquisition (M&A) activity in the cannabis industry is heating up, and market analysts point to several important factors contributing to increased activity.

Profit is always a central issue, and as the founders of companies established years ago seek attractive exit strategies, new players are considering ways to enter the field in a profitable way. The rapid evolution of technology and its increasing application also serve as catalysts for M&A, as larger companies pursue opportunities that are positioned for current or near-term commercial availability. Such expertise and assets developed by smaller brands could potentially turn them into attractive targets for M&A activity.

As Canada prepares to legalize the recreational use of marijuana next summer, the push for M&A becomes even greater. Since the beginning of the fourth quarter of 2016, an average of approximately 3.2 deals have been closing per week well into 2017.  In comparison, the average for the same period one year ago was approximately 1.4 deals. Analysts note an increase in interest from Canadian companies that wish to cross the border to become a part of the U.S. cannabis industry.

Generally, M&A activities focus on companies and facilities that already have well-developed positions in the field. In 2017, one of the oldest marijuana dispensaries in Denver sold to a Colorado enterprise . The fate of the two-best selling marijuana retailers in Washington was similar. The initial price tag set for the two businesses was $50 million. Developments on the Canadian market have also been pretty dynamic in 2017. The trend will potentially be upheld in the year to come and strategic interest will fall on innovators in the field of cannabis extraction and CBD oil delivery.