Medican Enterprises Inc (OTCMKTS:MDCN) stock is going through a very volatile phase in the markets, and the company is now looking at other areas to generate revenue. According to an official announcement, the company is diversifying its real estate business and has entered a deal with Breeding Rare Cannabis Original Genetics Inc (BRCOG). Even this could not help the stocks, and the only respite has come from a newly-acquired marijuana company TWYN.
BRCOG CEO R. White confirmed the news and said that the lease agreement with Medican was a great move, and the synergy of this relationship was exciting. He was looking forward to increasing the output of the production and research and development businesses of the company through the partnership.
U.S. Cannabis Market
Situated in Anza, California, the property is one of the many projects that the company is going to spearhead. According to an ArcView Group market analysis, a 74% growth or $2.7 billion was achieved by the U.S. cannabis market in 2014 and California alone had a 49% share in this.
Medican Enterprises CEO Ken Williams said that associating with BRCOG for working in the Californian market was good news. He said that the leasing deals were a great business opportunity for the company, and it was mulling many other projects in June 2015 and enhancing their partnership. The current focus of the company was to boost the shareholder confidence and tackle the dipping stock issue.
Details Of The Deal
According to the deal that has been signed between Medican and BRCOG, the warehouse, the greenhouse and the research and development facility will be leased on a monthly basis at $9000. The property has been leased by BRCOG for a minimum of five years initially. In turn, Medican would be providing finance, equipment and work on the technological aspect.
With the government of many U.S. territories looking to legalize the sale of medical marijuana or cannabis, the industry has been keeping pace and was approximately worth $2.34 billion in 2014. As per a report by Greenwave Advisors, if the treatment was legalized in all the 50 states, then it was estimated to grow at $35 billion by 2020.