Australian-based Cannim has reached an agreement for an all-scrip merger with privately owned Canadian cultivator Medisun.
The merged group will continue under the Cannim name and remain headquartered in Sydney, Australia. It is projecting pro-forma revenue of A$12 million for Q4 2021, representing annualised revenue post-merger of around $48 million.
Cannim chair John Worton said uniting the companies will boost access to international markets including the US and Canada.
“Crucially, the merger will introduce Cannim to the burgeoning legal adult-use segment,” he added.
Based in Ontario, Medisun clones one million cannabis plants per year, and produces up to 1000kg of medicinal-quality cannabis each week from a five-hectare, climate-controlled facility.
Medisun chair Friedwart Barfod, who will join Cannim’s board, said the firm’s management and capital markets expertise, coupled with its distribution capabilities, made the deal compelling.
“Both companies prioritise consistent supply of premium quality products at cost-effective pricing, and the potential scale of our combined operations was a key factor in our decision-making,” he added.
Cannim chief commercial officer Stuart Marsh said the company has begun the regulatory and compliance processes required to bring Medisun’s output into Cannim’s international sales channels.
“Significant orders for Medisun products have already been secured and we expect the first shipments to be delivered in the first quarter of 2022,” he added.