Tweed Marijuana buys producer, aims to be national company
The Canadian Press
Published Thursday, June 19, 2014 8:06AM EDT
OTTAWA -- Tweed Marijuana Inc. says it has bought Prime1 Construction Services Corp. for $3.6 million, which operates a medical marijuana greenhouse in Niagara-on-the-Lake, Ont., as it aims to become a national provider.
Ottawa-based Tweed says the acquisition will add more greenhouse space to its operations.
Tweed (TSXV:TWD) says Prime1 Construction Services Corp. is going through the Health Canada review process to become a licensed producer of medical marijuana.
The company says the acquisition will help it become a geographically diversified, multi-licensed public operation in Canada.
Tweed Marijuana is Canada's first publicly traded medical marijuana company and started trading on the Toronto Venture Exchange in April , and has a market capitalization of $114.6 million.
New regulations regarding medical marijuana were enacted by the federal government April 1. The move opened production up to the commercial sector.
As of late last month, Health Canada had received more than 850 applications from companies wanting to be medical marijuana suppliers.