- Myconic Capital (MEDI) has acquired assets related to 14 medical cannabis clinics owned by Aleafia Health (AH)
- Myconic will acquire the assets for 7,000,000 common shares priced at C$1.50 per share
- During 2020, the clinics generated approximately $3.5 million in revenues for Aleafia
- Myconic intends to expand the clinics’ services to include intravenous ketamine treatments, ketamine-assisted psychotherapy and esketamine nasal spray
- Aleafia Health is a vertically integrated and federally licensed Canadian cannabis company
- Myconic Capital is an investment issuer with diversified holdings in high-tech, real estate, cannabis, mining and health & wellness
- Aleafia Health (AH) is down by 3.64 per cent and is currently trading at $0.53 per share
- Myconic Capital (MEDI) is trading flat at $1.75 per share
Myconic Capital (MEDI) has acquired assets related to 14 medical cannabis clinics owned by Aleafia Health (AH).
The company executed and closed a purchase agreement to acquire the assets from Canabo Medical Corporation, a wholly-owned subsidiary of Aleafia Health.
Pursuant to the agreement, Myconic will acquire the assets for 7,000,000 common shares priced at C$1.50 per share.
The clinics have served more than 75,000 patients since inception. During 2020, they generated approximately $3.5 million in revenues for Aleafia.
Based on the clinics’ cash flows, Myconic believes the purchase provides a clear path to profitability with relatively low-risk business opportunities.
Myconic intends to expand the clinics’ services to include intravenous ketamine treatments, ketamine-assisted psychotherapy and the administration of esketamine nasal spray.
To ensure the stability of the clinics’ cash flow stream, Myconic and Canabo have also entered into a services agreement, pursuant to which Canabo will provide the services necessary to maintain the clinics’ current operations.
In consideration for these services, Myconic will pay a fee equal to Canabo’s cost of performing the services plus a 5 per cent margin. The agreement has a term of 10 years and shall be renewable at Aleafia’s option.
Robert Meister, Myconic’s CEO, commented,
“We believe that by expanding the scope of the treatments offered to patients to include others based on the use of ketamine, we can unlock new value through this investment for shareholders and the general public alike.”
Geoffrey Benic, Aleafia’s CEO, added,
“We are pleased to support Myconic’s goal of providing a broader scope of treatments and services for our long-time and prospective patients. Concurrently, we will continue providing best-in-class cannabinoid therapy from our experienced team of physicians, nurse practitioners and educators.”
Aleafia Health is a vertically integrated and federally licensed Canadian cannabis company.
Myconic Capital is an investment issuer with a diversified portfolio focused on emerging companies in high-tech, real estate, cannabis, mining and health & wellness.
Aleafia Health (AH) is down by 3.64 per cent and is currently trading at $0.53 per share as of 10:08 am ET.
Myconic Capital (MEDI) is trading flat at $1.75 per share as of 10:26 am ET.
