Medican Enterprises Inc (OTCMKTS:MDCN), a leading biopharmaceutical company, and a merchant bank in the marijuana industry has announced extending the option to buy two properties in Phoenix area. As per the reports, the company has successfully raised capital in the market to enhance its presence and operations nationally.
Insights on The Matter:
The total retail footprint of the first facility located in Phoenix is 7,200 sq. ft. At present, it has been leased to a dispensary that looks after licensed medical marijuana business. As per the reports, it pays a total rent of $15000 a month along with 30% share of gross sales on a monthly basis. Recently, there was a property appraisal process conducted by Kalinowski & Associates, which valued the property at $2.38 million.
The one thing that should be taken a note of here is that this is a constructive valuation. It simply takes into account the monthly rent of $15,000 and not the additional 30% share of the sales. Medican believes that this facility has good potential in terms of overall valuation. The surrounding conditions are improving very fast; hence, there are all chances that sales at this facility will touch new heights over the next few years.
The second facility is also located in the Phoenix area and spread across 66,000 sq ft. Medican looks forward acquiring this site with an objective to leasing it out to any licensed medical marijuana grower. The company hasn’t finalized the commercial terms for this lease activity. It had performed a property appraisal for the same property in February with the help of Kalinowski & Associates and found it worth $2.34 million.
The senior leadership team is delighted to see the patience showcased by the sellers of both the sites. According to Ken Williams, CEO, Medican Enterprises Inc (OTCMKTS:MDCN), it’s great to see the trust that sellers of these facilities have shown. Medican will look forward to closing both the deals a soon as possible.