Medican Enterprises Signs Binding Letter of Intent to Acquire Indoor Growing & Hydroponic Equipment Manufacturer Future Harve...
October 21 2014 - 8:00AM
Business Wire
Medican Enterprises Inc. (OTCBB:MDCN), a bio-pharmaceutical
company in the emerging global marijuana industry, is pleased to
announce that, in line with its mandate to acquire revenue
generating assets, its wholly owned subsidiary Medican Systems has
entered into a binding letter of intent to acquire Future Harvest
Development Ltd., a leading Canadian manufacturing company in the
home and garden, indoor growing, and hydroponic sectors.
Under the terms of the letter of intent, Medican Systems will
acquire a 70% interest in Future Harvest (with an option to acquire
the remaining 30%) for approximately $5 million in a combination of
cash and Medican Enterprises common stock in a transaction
involving Prestige Worldwide Holdings Inc., an entity which
currently holds an option to acquire Future Harvest. The
acquisition is subject to the preparation and execution of
definitive documentation and an audit of Future Harvest.
Based in Kelowna, British Columbia, Future Harvest is a pioneer
in the indoor gardening sector. For 14 years, Future Harvest has
been a leading manufacturer and a supplier of home and garden
equipment, medical marijuana growing equipment, nutrients,
fertilizers and additives to more than 75 distributors in Canada,
the United States and Europe. Future Harvest has annual revenue of
between $4 and $5 million, derived mostly from sales in Canada,
with gross profit margins in excess of 30%. Sales to date in 2014
are up 50% and are projected to surpass $10 million for the year
ended December 31, 2014.
Future Harvest’s premier product line includes
industry-recognized brands such as Sunblaster Lighting™, Nutradip,
Plantlife Products and FHD Plastics as well as the Nano-Dome and
Grow Light Garden systems currently sold at major hardware and home
and garden centers in North America. In particular, the Sunblaster™
T5 is the lighting system of choice for master growers in the
medical marijuana and urban farming space for cloning, germination
and vegetative growth. With 20% higher efficiency rate and a more
natural and healthy source light, the T5 has significant commercial
applications.
Future Harvest also holds numerous patents and other
intellectual property, the majority of which are designed and
developed in house. In addition, all of Future Harvest’s nutrients
and additives are proprietary formulations and are produced in the
company’s bottling facility in Kelowna.
Medican views the transaction as a key component to its mission
of becoming a vertically integrated, revenue generating company in
the medical marijuana, hydroponic and home and garden sectors. The
acquisition of Future Harvest fulfills the equipment manufacturing
piece of this mission as Medican seeks to become the manufacturer
of choice for the burgeoning medical marijuana industry in Canada
and the United States.
“We believe that Future Harvest’s products are second to none in
the industry, and we know that many veteran growers in the industry
only trust T5 lighting systems, fertilizers, and additives,” stated
Ken Williams, CEO of Medican Enterprises Inc. ”As we seek to
develop or acquire medical marijuana facilities over the next 24
months, this acquisition brings an equipment manufacturing
capability which will be highly complimentary to our future growing
businesses. We are pleased to be working with such a talented team
and are excited about the opportunity to become the industry leader
in equipment manufacturing.
“In addition to this transaction, we are in the process of
reviewing other acquisition targets that can play a similar role in
the growth and development of Medican Enterprises,” Mr. Williams
concluded.
About Medican Enterprises, Inc.
Medican Enterprises is a bio-pharmaceutical company focused on
pursuing business opportunities in the growing medical and
recreational marijuana sector. Through its subsidiaries, Medican is
seeking to invest in our businesses associated with the growing,
marketing, research and development, training, distribution and
retail sale of medical and recreational marijuana, both in the
United States and Canada. For more information visit:
www.medicaninc.com.
Cautionary Note Regarding Forward-Looking Statements
This press release and statements of representatives of Medican
Enterprises, Inc. (the “Company”) related thereto includes
forward-looking statements within the meaning of the U.S. federal
securities laws. Forward looking statements are statements that are
not historical facts. Such forward-looking statements are subject
to significant risks and uncertainties that are subject to change
based on various factors (many of which are beyond the Company's
control), which could cause actual results to differ from the
forward looking statements. Such statements may include, without
limitation, statements with respect to the Company's plans,
objectives, projections, expectations and intentions and other
statements identified by words such as "projects," "may," "will,"
"could," "would," "should," "believes," "expects," "anticipates,"
"estimates," "intends," "plans," "potential" or similar
expressions. These statements are based upon the current beliefs
and expectations of the Company's management but are subject to
significant risks and uncertainties, including those detailed in
the Company's filings with the Securities and Exchange Commission.
Actual results (including, without limitation, the results of the
Company’s efforts to acquire and integrate Future Harvest as
described herein) may differ from those set forth in the
forward-looking statements. Except as required by applicable law,
the Company expressly disclaims any obligations or undertaking to
release publicly any updates or revisions to any forward-looking
statements contained herein to reflect any change in the Company’s
expectations with respect thereto or any change in events,
conditions or circumstances on which any statement is based.
Medican Enterprises Inc.Ken Williams, +1
800-416-8802CEOinvestors@medicaninc.com
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