Tweed and Bedrocan: A 'Budding' Acquisition

09/09/2015 9:00 am EST

Focus: STOCKS

Michael Berger

President & Founder, Technical420.com

September has already been a big month for the Canadian medical marijuana industry, as Michael Berger, of Technical420.com, points out that a recent acquisition has made this newly combined cannabis super power the new market leader in Canada.

A few days after completing the acquisition of Bedrocan Cannabis Corp. (BED), Tweed Marijuana, Inc. (TWD) made a strategic acquisition to support the newly combined company.

Last week, TWD announced that they entered into an agreement to acquire MedCannAccess in an all-equity transaction. TWD will now be able to offer in-person client services through MedCannAccess's network of community engagement centers in Ontario. This acquisition makes TWD the first licensed producer in Canada to offer in-person services.

Focused on Client Integration

The acquisition of Bedrocan successfully combined the two largest Canadian medical marijuana producers and created a super power in the Canadian medical marijuana industry.

The first priority for the newly combined company is to integrate its more than 5,600 active and registered clients and build on the unique strengths of each brand. TWD and BED patients will now have access to both product lines.

Acquisition Enhances TWD's Cannabis Extract Business

Under the MedCannAccess acquisition agreement, TWD acquired a 33% stake in CannScience Innovations, Inc., a drug development company based out of Toronto. CannScience conducts extracts research and is focused on delivering standardized metered dosing in a range of alternate delivery methods.

Tweed also acquired a library of proprietary genetics produced by Humber Valley Seeds.  This will further diversify the company's product offerings and create opportunities for breeding and product development.

Bedrocan and Tweed Continue to Receive License Approvals

On August 27, Bedrocan received a license amendment from Health Canada that allows them to sell up to 2,000 kilograms of medical marijuana until February 17, 2016. The company also retained its license to sell up to 240 kilograms from its second facility.

The increased capacity came a few days after Bedrocan's production facility was fully licensed by Health Canada. These license amendments significantly expand the company's production capacity and reach.

In mid-August, Tweed received approval from Health Canada to begin the production of cannabis extracts in its facility in Smiths Falls, Ontario. Health Canada also approved seven climate-controlled drying rooms, a trimming room, an extraction room, and a processing room.

Outlook

September has already been a big month for the Canadian medical marijuana industry and these acquisitions have made TWD the market leader in Canada.  TWD and BED will continue to grab market share in a rapidly growing industry that is in its infancy.

Michael Berger, Founder and President, Technical420.com

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