MJardin has revealed plans to expand into Europe, Africa, and Latin America after launching on the Canadian Securities Exchange this week.
The firm was founded in Denver, Colorado a decade ago and it now has more than 300 employees working across 23 cultivation facilities in North America. This month it raised C$26 million ($19.7 million) and it listed on the CSE after a reverse takeover with Sumtra Holdings.
Chief executive Rishi Gautam, who has led the group since 2014, called it a “significant milestone in our evolution and a testament to our team’s dedication and focus on building a preeminent global cannabis management platform”.
He added that MJardin is “well positioned for continued growth in the US and Canada, as well as international expansion in Europe, Africa and Latin America”. That international expansion will come via international assets, partnerships, and joint venture arrangements. The firm said discussions are underway in all three regions as it bids to move out of its North American heartland and become a global player.
It also plans to consolidate its US operations, expand its Canadian business and ramp up its focus on research and development through a Spanish university partnership that will conduct medical epilepsy trials. It plans to introduce more branded consumer cannabis goods and fund further acquisitions through a partnership with Bridging Finance Inc.
This week it agreed on a deal worth C$238 million ($180.6 million) to purchase Toronto-based cannabis firm GrowForce Holdings Inc. Gautam said the takeover will allow it to create a group with unparalleled experience in the cultivation, processing, distribution, and retail of marijuana.
MJardin’s common share price was valued at $12 ahead of the takeover, and the implied consideration to GrowForce shareholders is $4.50 per share. Once it passes the necessary regulatory channels, the combined group will have a pro forma cash balance of around C$65 million ($49.3 million).
When the deal closes, MJardin will own 23 production facilities across North America, yielding 87,000 kilos of cannabis per year, along with two outdoor grows, five extraction facilities, and 19 retail outlets.
A combined management team will bolster its strengths in project management, patient advocacy, consumer marketing and software development, according to MJardin. It will have a market capitalization of approximately C$850 million ($645 million) when the deal goes through and it has a significant war chest to fund its planned international expansion.