Rapidly growing US weed player Marapharm (MDM.C) has been taking full advantage of the several million in cash they’ve brought in from warrants of late, building out a 360k sq ft grow facility in Las Vegas, and this week announcing that they’re taking a position in Vancouver cannabis research outfit, Veritas Pharma (VRT.C).
News of the purchase has come with precious little side info explaining the rationale for the purchase, so I called on a contact who has a stake in both camps, who told me, “With the things in the US playing out as they are, Marapharm felt like they’re going down a path that shares synergies with what Veritas is doing, so there were discussions and they decided not just to do business, but to get more involved.
Marapharm will now have a seat on the board of Veritas after a $1.1 million share purchase at current market pricing.
MDM President Linda Sampson will be joining the VRT board.
Sampson said of the deal:
“I am impressed with the medical research being conducted by Veritas and its associates. I look forward to working the Cannevert group of scientists to help monetize their intellectual property which is currently being developed. I strongly feel that there are several synergies between Veritas and Marapharm which should result in a win-win for the shareholders of each.”
The purchase was a real shot in the arm for Veritas, which will put the cash to good use and enjoy having a much longer runway during which they’re regularly trialing a variety of marijuana strains as a treatment for nausea, vomiting, epilepsy, and PTSD.
Part of that investment will go to complete the remaining $750,000 of financing required to acquire 80% of the stock in Cannevert Therapeutics.
— Chris Parry
FULL DISCLOSURE: Veritas Pharma is a former Equity.Guru marketing client. Marapharm is a current Equity.Guru marketing client.