LAS VEGAS–(Business Wire)–Medican Enterprises Inc. (OTCBB:MDCN), a company seeking promising pharmaceutical and other business opportunities in the emerging medical and recreational marijuana sector, today announced that it has signed an agreement to acquire a 67,000 square foot facility in Phoenix, Arizona which the company plans to lease as a marijuana growing and warehouse facility to licensed growers.
The industrial building sits on 2.55 acres of industrial zoned land. The anticipated final purchase price for the property is $2,340,310 and a closing is planned during the first quarter of 2015 pending, among other closing conditions, a variance to zone the building for the cultivation of marijuana.
The acquisition of this property will launch Medican’s real estate and leasing services business under which the company would lease real estate that is outfitted with turnkey solutions for legally compliant growing facilities to licensed growers. At current market rates the property is estimated to produce annual lease revenues of approximately $1,400,000.
“The Phoenix, Arizona building will be a great launch to our real estate leasing strategy, and we are extremely pleased to have progressed to this milestone,” commented Drew Milburn, CEO of Medican US, Medican’s subsidiary in charge of United States operations. “Medican US is quickly gaining momentum in the real estate and leasing services to the legal marijuana sector, and we are seeking additional acquisitions in the near term.”
Medican also provided an update to its October 21, 2014 announcing its entry into a letter of intent to acquire an interest in Canadian hydroponic technology company Future Harvest Development Ltd. Medican has not been able reach a mutually acceptable agreement with the various parties involved. As a result, the parties have terminated the letter of intent and the refundable portion of the deposit funds have been returned to Medican.
“The Future Harvest acquisition is no longer in Medican’s best interest at this time,” said Ken Williams CEO of Medican Enterprises. “While Medican is disappointed it was not able to come to terms with the Future Harvest shareholders, we continue to have ongoing discussions in respect of other marijuana-related business opportunities and look forward to announcing those opportunities as we reach definitive agreements.”