CGX Life Sciences Inc., a wholly owned subsidiary of The Canadian Bioceutical Corp. (TSXV:BCC), announced that it’s entered into a letter of intent (LOI) under which a US-based lender will provide up to $7.25 million in real estate acquisition and development financing for its Nevada-based medical marijuana project.
As quoted in the press release:
BCC announced on August 10, 2015 that it had signed a letter of intent to acquire the shares of a Medical Marijuana Establishment (“MME”), based in Henderson, which has been granted a provisional cultivation license and a provisional production license by the state’s Division of Public and Behavioural Health. This proposed acquisition is conditional upon, inter alia, BCC arranging for applicable financing which would be satisfied with the consummation of the proposed financing announced herein.
Scott Boyes, The Canadian Bioceutical CEO, commented:
We believe our company’s planned expansion into the Las Vegas and Nevada markets presents an opportunity for significant revenue growth and attractive returns for our company and its shareholders. We have identified several sites within the City of Henderson and will be making a final purchase selection this week so we can quickly proceed with a purchase, build-out and the commencement of production. Henderson is a vibrant and fast growing municipality and we look forward to working with the city to bring both new investment and employment to the community.
As noted in our August 10th announcement, Nevada has been particularly progressive in the development of its medical marijuana (“MMJ”) regulations and there is a very optimistic outlook for growth of the industry in the state. Of particular note is the reciprocity offered to out-of-state medical marijuana card holders. With over 40 million people visiting Las Vegas every year, Nevada’s policy of recognizing the status of patients from other jurisdictions significantly enhances the potential size of the MMJ market in the state.