MediPharm Labs said it's reached a deal to sell its cannabis facility in Hope, B.C. to Rubicon Organics for CAD$4.5 million (approximately $3.1 million) in cash. As part of the deal, Rubicon has agreed to acquire the assets, including certain equipment, the land and building, associated with the Hope Facility, a 47,500-square-foot indoor cannabis grow.
“Acquiring the Hope Facility is a milestone for Rubicon Organics and further strengthens our premium production capacity setting up Rubicon Organics to service the growing demand for our leading brand portfolio, and accelerating our growth beyond our existing footprint,” said CEO Margaret Brodie.
The company intends to use the Hope Facility to increase its production capacity. It estimates annual production capacity of up to 4,500 kilograms (more than 9,900 pounds) and expects its first harvests in 2025.
"Securing $4.5 million through the divestment of non-core assets in this Transaction will further reinforce MediPharm's ability to capitalize on strategic M&A synergies, streamline operations and maximize value for both shareholders and valued partners," said MediPharm CEO David Pidduck. "The sale of the Hope Facility strengthens not only our cash position but also our 2025 focus - investing in our international and medical growth strategies as a global leader in pharmaceutical cannabinoid solutions."
The transaction is expected to close within the second quarter of 2025.
