LAS VEGAS--(BUSINESS WIRE)--Medican Enterprises Inc. (OTCBB:MDCN), a bio-pharmaceutical company in the emerging global marijuana industry, is pleased to announce that, in line with its mandate to acquire revenue generating assets, its wholly owned subsidiary Medican Systems has entered into a binding letter of intent to acquire Future Harvest Development Ltd., a leading Canadian manufacturing company in the home and garden, indoor growing, and hydroponic sectors.
Under the terms of the letter of intent, Medican Systems will acquire a 70% interest in Future Harvest (with an option to acquire the remaining 30%) for approximately $5 million in a combination of cash and Medican Enterprises common stock in a transaction involving Prestige Worldwide Holdings Inc., an entity which currently holds an option to acquire Future Harvest. The acquisition is subject to the preparation and execution of definitive documentation and an audit of Future Harvest.
Based in Kelowna, British Columbia, Future Harvest is a pioneer in the indoor gardening sector. For 14 years, Future Harvest has been a leading manufacturer and a supplier of home and garden equipment, medical marijuana growing equipment, nutrients, fertilizers and additives to more than 75 distributors in Canada, the United States and Europe. Future Harvest has annual revenue of between $4 and $5 million, derived mostly from sales in Canada, with gross profit margins in excess of 30%. Sales to date in 2014 are up 50% and are projected to surpass $10 million for the year ended December 31, 2014.
Future Harvest’s premier product line includes industry-recognized brands such as Sunblaster Lighting™, Nutradip, Plantlife Products and FHD Plastics as well as the Nano-Dome and Grow Light Garden systems currently sold at major hardware and home and garden centers in North America. In particular, the Sunblaster™ T5 is the lighting system of choice for master growers in the medical marijuana and urban farming space for cloning, germination and vegetative growth. With 20% higher efficiency rate and a more natural and healthy source light, the T5 has significant commercial applications.
Future Harvest also holds numerous patents and other intellectual property, the majority of which are designed and developed in house. In addition, all of Future Harvest’s nutrients and additives are proprietary formulations and are produced in the company’s bottling facility in Kelowna.
Medican views the transaction as a key component to its mission of becoming a vertically integrated, revenue generating company in the medical marijuana, hydroponic and home and garden sectors. The acquisition of Future Harvest fulfills the equipment manufacturing piece of this mission as Medican seeks to become the manufacturer of choice for the burgeoning medical marijuana industry in Canada and the United States.
“We believe that Future Harvest’s products are second to none in the industry, and we know that many veteran growers in the industry only trust T5 lighting systems, fertilizers, and additives,” stated Ken Williams, CEO of Medican Enterprises Inc. ”As we seek to develop or acquire medical marijuana facilities over the next 24 months, this acquisition brings an equipment manufacturing capability which will be highly complimentary to our future growing businesses. We are pleased to be working with such a talented team and are excited about the opportunity to become the industry leader in equipment manufacturing.
“In addition to this transaction, we are in the process of reviewing other acquisition targets that can play a similar role in the growth and development of Medican Enterprises,” Mr. Williams concluded.
About Medican Enterprises, Inc.
Medican Enterprises is a bio-pharmaceutical company focused on pursuing business opportunities in the growing medical and recreational marijuana sector. Through its subsidiaries, Medican is seeking to invest in our businesses associated with the growing, marketing, research and development, training, distribution and retail sale of medical and recreational marijuana, both in the United States and Canada. For more information visit: www.medicaninc.com.
Cautionary Note Regarding Forward-Looking Statements
This press release and statements of representatives of Medican Enterprises, Inc. (the “Company”) related thereto includes forward-looking statements within the meaning of the U.S. federal securities laws. Forward looking statements are statements that are not historical facts. Such forward-looking statements are subject to significant risks and uncertainties that are subject to change based on various factors (many of which are beyond the Company's control), which could cause actual results to differ from the forward looking statements. Such statements may include, without limitation, statements with respect to the Company's plans, objectives, projections, expectations and intentions and other statements identified by words such as "projects," "may," "will," "could," "would," "should," "believes," "expects," "anticipates," "estimates," "intends," "plans," "potential" or similar expressions. These statements are based upon the current beliefs and expectations of the Company's management but are subject to significant risks and uncertainties, including those detailed in the Company's filings with the Securities and Exchange Commission. Actual results (including, without limitation, the results of the Company’s efforts to acquire and integrate Future Harvest as described herein) may differ from those set forth in the forward-looking statements. Except as required by applicable law, the Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with respect thereto or any change in events, conditions or circumstances on which any statement is based.