Canadian Bioceutical partners with Arizona dispensaries

The Canadian Bioceutical Corporation (BCC) has announced it will operate a pair of dispensaries in Arizona through a recently acquired management firm.

The deal, which cost BCC $35.5 million ($27 million USD) also gives the company ownership of a natural health products company, CGX Life Sciences, as a subsidiary, as well as the rights to license intellectual property from Melting Point Extracts, another Arizona-based medical marijuana company.

The Ontario-based corporation, which trades on the over-the-counter market under the ticker symbol CBICF, will manage two dispensaries that operate under the brand Health for Life in the Phoenix area. The dispensary licenses will remain with the two not-for-profits that currently hold them, and those organizations will pay the Canadian firm to run the day-to-day operations, according to CEO Scott Boyes.

The deal also gives the firm a launchpad for other cannabis business opportunities throughout the United States, including in Nevada, Maryland and Pennsylvania.

But the entire deal is dependent on approval from the Canadian Stock Exchange, according to the Phoenix New Times.

BCC and CGX Life Sciences expects the arrangement to provide 323 percent year-over-year growth in profits, even though Arizona voters in 2010 only approved a medical-marijuana program in which dispensaries should be owned and operated by nonprofit companies.

The corporation is not yet one of the 38 licensed producers in Canada, but it applied for a license in late 2014.

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