Medican Enterprises Inc (OTCMKTS:MDCN) could not help its fall during yesterday’s session after the company announced its new lease agreement with Breeding Rare Cannabis Original Genetics Inc. (BRCOG). The news came as a disappointment to investors, who were waiting to hear the company’s progress on its Arizona properties.
New agreement to reach California
However, the latest announcement appeared as Medican Enterprises Inc (OTCMKTS:MDCN)’s effort to divert the attention of investors to a new development, but its attempts plainly failed. The company notified that it has executed and entered into a lease agreement with BRCOG for extending its real estate and leasing reach within California.
he terms, and conditions of the lease agreement provide that BRCOG will lease out the indoor warehouse, R&D property and outdoor greenhouse for $900 a month for at least a term of sixty months. Also, BRCOG reserves the right to extend the term by an additional five years. Also, Medican Enterprises Inc (OTCMKTS:MDCN) will be responsible to assist in lease improvements through financing, equipment and grow technologies. BRCOG’s CEO R. White states the excitement over the new synergies that its relationship with Medican brings and added that they look forward to maximizing its production and R&D businesses productivity.
Failed to thrill investors
The agreement pertains to a property situated in Anza, California, which is first among the other multiple planned projects. As per the market research by the ArcView Group, the cannabis market reportedly grew by 74% in 2014 to $2.7 billion in the U.S. Out of which, California alone claims 49% of the market share. Medican Enterprises Inc (OTCMKTS:MDCN)’s CEO Ken Williams said that they are excited to associate with BRCOG. He added that by exploring new locations such as California, the company will only add up the business opportunities and attain geographic diversification.
While the announcement was positive, Medican Enterprises Inc (OTCMKTS:MDCN)’s silence on its Arizona properties upset investors. The stock of the company nosedived by nearly 27% to $0.0030 as 15 million shares changed hands.
