A Vancouver-based company has agreed to purchase marijuana producing Bloomera of Markham for $15 million.
RavenQuest BioMed Inc., a cannabis company that deals in several facets of the business, has entered into a binding letter of intent with Bloomera that will also see 10,400,000 common shares go to existing Bloomera shareholders as part of the deal.
Bloomera currently holds a Health Canada license to cultivate marijuana for medical purposes and will initially add approximately 2,000 kilograms of annual cannabis production to RavenQuest’s investment division. Combined with other facilities and ongoing research, RavenQuest expects to increase production to 11,000 kilograms by the end of this year and to eventually sell the product to the general user market under the new federal guidelines.
“Markham, Ontario provides low cost access to the upcoming retail distribution network and the municipality has a large skilled workforce available,” said George Robinson, RavenQuest CEO. “Strategically Bloomera is a tremendous fit with RavenQuest. Our Alberta Green Biotech facility gives us western Canadian exposure. The addition of the Bloomera provides us direct access to the Greater Toronto Area, Canada’s largest cannabis market. This proposed acquisition executes on our stated objective to prudently build a national and ultimately global cannabis company. We plan to continue to add to our portfolio on a selective basis where we see strategic benefit.”
Robinson also said the Bloomera acquisition accelerates the company’s growth strategy as well reducing the company’s footprint because of the Markham site’s efficient use of its 55,000 square foot facility.
Completion of the acquisition is subject to a number of regulatory approvals.