Abba Medix Signs LOI with Redecan Pharm
Saratoga Electronic Solutions Inc. (CSE:ABA) announced that Abba Medix Corp., its subsidiary, has entered into a letter of intent (LOI) with 9037136 Canada Inc., which is operating and known as Redecan Pharm. Redecan is licensed to produce and distribute medical marijuana by Health Canada.
As quoted in the press release:
Under the terms of the LOI, Abba Medix shall pay to Redecan an aggregate consideration of CDN $11,000,000, payable in cash and shares of the Company, subject to negotiation of the Definitive Agreements.
The LOI is non-binding and is expected to be superseded by a Definitive Agreement to be agreed to and signed between the parties. The Transaction is subject to regulatory approval and standard closing conditions.
Further details about this transaction and the combined entity will be provided in a comprehensive press release when the parties complete the Definitive Agreement.
Redecan is focused on developing premium quality medical marijuana products and is a licensed producer and seller, able to cultivate marijuana under the Marihuana for Medical Purposes Regulations (“MMPR”) in Canada.
The principal focus of Redecan is the production of marijuana from its fully-secured, 15,000 square foot greenhouse production facility in Niagara, Ontario. Redecan obtained a medical marijuana license to undertake the production of medical marijuana in July 2014, and in March 2015 was awarded its sales license. Abba Medix and Redecan shall review, count, and determine the value of Redecan’s product inventory immediately following the Closing. Redecan estimates that there is currently 114.7kg of product inventory.
Redecan is currently listed as one of the seventeen companies in Canada to obtain such a license to date.