Toronto-based Alternate Health Corp. (CSE: AHG; OTCQB: AHGIF) is gearing up to expand the company’s portfolio with the acquisition of two California cannabis entities.
Alternate Health Corp. officially inked a deal to purchase majority stakes in cannabis extract producer Care MMJ and their flavoured cannabis subsidiary brand Bionic Bee.
Pursuant to the deal, Alternate Health will acquire Care MMJ’s cannabis extraction facility in Los Angeles, as well as all of Bionic Bee’s inventory, employees, and flavoured cannabis formulas.
Care MMJ currently operates under not-for-profit rules as a medical marijuana producer, but will transition to a for-profit company licensed by the state for cannabis sales prior to the deal’s completion.
In addition to the new acquisitions, earlier this month Alternate Health also held their annual general shareholder meeting. At that gathering, George Mull was appointed as a new member of the board of directors for the coming year, as well as named the company’s incoming President.
Alternate Health chairman and Chief Executive Officer Dr. Michael Murphy commented on the developments:
“With Alternate Health’s recent acquisition of distribution, processing and manufacturing licenses in Humboldt County, the company is taking an aggressive approach to capturing a significant share of California’s adult-use cannabis market.”
Murphy went on to say, “By incorporating Kare MMJ and Bionic Bee into Alternate Health, we immediately gain invaluable market expertise and an established brand to move forward at this exciting time in the industry. Bionic Bee has a proven, market-ready business model.”
Since the Cannabis Act legalized adult-use recreational marijuana in Canada last month, Canadian companies have increasingly eyed deals with the burgeoning US cannabis industry.
While marijuana is illegal federally in the country, a growing number of states allow either medical or recreational cannabis usage, with the first retail marijuana outlets opening in Massachusetts yesterday.
British Columbia’s Emerald Health Therapeutics was just granted conditional approval for a joint venture with a US-based natural health product company, while Ontario’s High Hampton Holdings recently purchased a 100% interest in US cannabis producer Mojave Jane.