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Home / Arizona Cannabis News / AZ Dispensaries and Extract Company Acquired by Canadian Bioceutical Corp

AZ Dispensaries and Extract Company Acquired by Canadian Bioceutical Corp

Health for Life Mesa

Canadian Bioceutical Corporation (BCC), in combination with CGX Life Sciences, has acquired some Arizona medical marijuana companies. Health for Life (H4L) dispensaries in Mesa and Melting Point Extracts (MPX) are now owned in majority by BCC.  The growth of these businesses piqued the interest of the Canadian corporation for its low-risk and high-reward potential.

The acquisition of H4L and MPX are to provide material support for the expansion of both companies, according to Yahoo! Finance. H4L’s current annual production is 1.6 million grams of dry flower, which will be doubling with BCC’s financial assistance. MPX currently produces 60,000 grams of concentrate annually, which will increase with new equipment and technology through the acquisition.

CEO of BCC Scott Boyes said, “This transaction, we believe, makes us the most profitable cannabis company listed in Canada. More than that, it creates a platform for growth in a number of very attractive U.S. markets, which are forecast to reach US$22 billion by 2020. To create further shareholder value, we are pursuing a two-tier strategy. Firstly, we are expanding the production capacity of our Arizona operations, and will leverage the performance and strength of our brands to drive continued organic growth. We will support this growth through expanded production capacity, as well as the use of innovative technology. Secondly, we will pursue attractively priced acquisition opportunities throughout the U.S. Many operations in the U.S., though profitable, are small and undercapitalized and require a financially strong partner to pursue further growth. The strength of our balance sheet, with growing cash flow positive operations, and our proven access to capital, create the financial fire power required to implement this strategy.”

President Designate of CGX Beth Stavola said, “The Arizona market is a very attractive platform on which to build our U.S. operations. Product prices are relatively high, especially compared to Canada, and operational costs are relatively low, creating an ideal environment for sustainable growth of revenues and profitability. Furthermore, despite the no-vote, we believe that momentum continues to move Arizona towards legalization of adult use within the next few years. We are one of the largest and best known brands in Arizona, which we believe positions us extremely well to capitalize on the growth opportunities in both the medical and adult markets, once the latter is legalized.”

Photo: fb. com/HealthForLifeAZ



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