Canadian Cannabis Corp Joint Venture to Acquire 70% of Medicinal Cannabis Resource Centers Inc.
ACCESS Newswire
OAKVILLE, ON / ACCESSWIRE / April 29, 2016 / Canadian Cannabis Corp. (OTCPK: CCAN) announces a joint venture between its wholly owned subsidiary, The Clinic Network (TCN) and Medicinal Cannabis Resource Centers Inc. (MCRCI).
TCN is the association of 52 clinics in the province of Ontario that are staffed and administrated by licensed healthcare professionals. MCRCI operates three specialty clinics focused on medical cannabis therapeutic effects, located in Vancouver, Kamloops and Montreal. MCRCI was voted Canada's Top Cannabis Clinic by Lift Cannabis in the Canadian Cannabis Awards.
In the joint venture, TCN and MCRCI have designed patient centric programs that focus on patient well being, by informing physicians and employers of the benefits of medicinal marijuana as an alternative therapy, utilizing MCRCI's proven educational resources. Currently, MCRCI directly manages over 3,300 patients who on average order 0.95 grams of cannabis per day to treat their symptoms. This represents revenue to producers of cannabis in Canada of over CAD $8,300,000 per year. Patients can contact MCRCI to learn about cannabis treatment options and attain a prescription, as well as specialty pharmacy services such as compounding in a dosage regulated format that is aligned with their preference. TCN has over 600 referring physicians with a rostered patient population in excess of 1 million. Under the terms of the JV, TCN will earn a 70% ownership of MCRCI shares and 100% of all MCRCI assets.
Terry Roycroft, Founder and President of MCRCI stated: "We are pleased to combine our medicinal cannabis programs (for physicians and patients), with the infrastructure and marketing expertise of The Clinic Network. Our leadership in physician and patient education, along with our unique compounding capability for cannabis delivery has established MCRCI as the leading full service cannabis clinic group in Canada."
Benjamin Ward, CEO of Canadian Cannabis Corp stated: "The J.V. will provide MCRCI with growth capital for its clinic expansion across the country. MCRCI will work with TCN to proliferate evidence -based understanding of cannabis benefits for patients."
About MCRCI: The Medicinal Cannabis Resource Centre Inc. (MCRCI) is dedicated to assisting patients who are helped by the use of medical marijuana. MCRCI arranges for them to meet with a qualified doctor who has an understanding of cannabis and cannabis-derived medicines in a compassionate and non-judgmental environment. MCRCI helps guide our patients through the process of becoming legal users of medical marijuana in accordance with Health Canada's Marihuana for Medical Purposes Regulations (MMPR). MCRCI also provides information and advice in the use of marijuana as medicine and assists patients in choosing a legal source of medical grade marijuana.
About TCN: TCN includes members of the Ontario Physiotherapy Clinic Association (OPCA). OPCA member clinics treat over 40,000 patients annually for a range of rehabilitation medicine and chronic pain conditions. The TCN clinics that receive public sector funding are licensed to treat patients under 19 and over 65, as well as those under post-operative discharge from a hospital, by the Ontario Ministry of Health and Long Term Care (MOHLTC).
Terms of the JV/Acquisition: CCAN via its wholly owned subsidiary TCN shall acquire 70% of the shares of MCRCI and 100% of all MCRCI assets. Under the terms of the agreement CCAN shall pay CAD $200,000, of which CAD $25,000 has been advanced under a secured promissory note, and a total of 1,050,000 shares of common stock over the course of a three year period, aligned with performance targets.
About Canadian Cannabis: Using an education and research focused platform targeted at healthcare providers and patients, Canadian Cannabis Corporation (CCC) will provide high 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.
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.
