Medican Enterprises Inc (OTCMKTS:MDCN) disclosed that it closed acquisition of TWYNS, a firm that offers branding services to entities in the Cannabidiol business. The deal is valued at almost $1 million, all in stock and is projected to add nearly $400,000 to company’s annual revenues.
The expert call
Ken Williams, the CEO of Medican, said that TWYNS business strategy extends the CBD product sale to more customers across world. It has to be achieved through strategic branding. The model decided is Coca-Cola’s successful bottling distributing deal. The management believes that cannabis is going to be a cottage industry in the future. Almost all of the regulated jurisdictions will demand for fees and licenses. The seller company will offer local growers, distributors, and product manufacturers with a trustworthy ‘seal of approval.’ It will indicate that the products are of premium quality, to be precise; it will act as a reliable benchmark for customers.
TWYNS will result in long term value creation for Medican’s shareholders. Williams added that the deal will result in immediate profits from certification as well as licensing businesses without operational overhead or capital costs. In addition, Medican is also partnered to offer quality edibles and tinctures. The sales of its infused products are estimated to surge dramatically, including sale of high quality CBD oil to various other firms.
Medical Marijuana is produced from strains of cannabis produced to get high levels of THC. On the other hand, CBD products are produced from industrial hemp, the low THC, high CBD strain utilized to produce paper, resins, ropes, textiles and other industrial materials. Medican highlighted that TWYNS offers E-MC2 trademark to producers of supplements, edibles, salves and lotions. It also provides license on commercial art work.
In last trading session, the stock price of Medican declined more than 20% to close the trading session at $0.00440.