MCCN.V - Medcolcanna

Discussion in 'Canadian Stocks Message Boards' started by CDNstockwatcher, Jun 17, 2020.

  1. CDNstockwatcher

    CDNstockwatcher New Member

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    There was pretty big news on this Company about 1 week ago. Market cap is 10M CAD with the uptick. Here is part of the press release.

    Medcolcanna Organics Inc. (TSXV: MCCN) ("Medcolcanna", "MCCN" or the "Company"), a leading Canadian and globally integrated medicinal cannabis company with operations in Colombia, is pleased to announce the execution of a Letter of Intent ("LOI") with Industrial Hemp Farms ( "IHF"), a large and well-established company based in Colorado, USA. The proposed business transaction is for the purchase of $1.0M USD ($1.2M CAD approx.) minimum of hemp derived high CBD dried flower per month. Pursuant to the LOI, other commodities will be also purchased from Medcolcanna by IHF.

    The terms outlined in the LOI include a CBD Dried Flower Supply agreement, an option agreement for the supply of other MCCN products to IHF, and an investment option for IHF into MCCN if IHF meets certain performance targets.

    Under these initial terms, and subject to the approval on upcoming legislation proposed by the Colombian Government on dried cannabis flower exports, MCCN is to supply IHF with a minimum of 20,000 pounds of CBD dried flower per month at a price of $50 USD per pound, for 5 years. The two Companies will also enter into a Supply Option Agreement along with the definitive agreement of CBD Dried Flower Supply Agreement, whereby MCCN is to supply and produce many other products for IHF including CBD, CBG, and CBN isolates, oils and distillates, as well as other consumer products.

    This supply agreement would represent a minimum of $12 million USD ($14.5M CAD) on a rolling 12 month basis in revenue for MCCN. MCNN anticipates the CBD dried flower supply agreement to begin in Q4 2021, when regulations should be in place for the flower export
     
  2. CDNstockwatcher

    CDNstockwatcher New Member

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    There was more news out on MCCN this morning. Here is some exerts from the PR

    MCCN is to initially provide extraction services to La Finca for 26,000 kilograms of dried biomass every three months. MCCN will immediately benefit by utilizing capacity of its 800 tons per year of dried biomass extraction capacity. This will allow MCCN to reduce its fixed extraction costs on a per unit basis which will be beneficial to all of MCCN's extraction customers as well as reduce the cost for MCCN to extract its own cultivated biomass

    Additional Operational update

    MCCN's Propagation business Unit has recently executed a new agreement to supply approximately 10,000 cuttings per month. The additional revenue that will be generated from agreement for cannabis plant cuttings, will bring MCCN's propagation business unit to approximate self-sustainability and with an outlook to profitability. Additionally, twenty-eight cutting supply agreements have been executed, the counter parties vary from licensed and operating companies to companies that are yet to receive their cultivation licenses.

    MCCN is also pleased to provide an update on the export of its CBD Isolate product from its Colombia facilities as well as recent sales. MCCN has exported approximately 100 kilos of CBD isolate during the last 60-days all 100 kilos have been delivered to customers. MCCN is encouraged that, through its distribution, logistical process and procedures, it has been able to deliver these products to its valued customers. MCCN was also pleased that some of the recent sales are from recurring customer purchases.

    Here is a link to the Company PR

    www.medcolcanna.com/press-releases/mccn-executes-extraction-agreement-with-third-party-cultivator/

    CDNstockwatcher
     

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