These premises are currently sub-leased to various individuals for producing medical cannabis under Health Canada's previous regulatory regime.
Additional assets acquired from the unnamed private company include the corresponding consulting business, the principal of whom is hired by certain clients to provide guidance on the cultivation of various strains of Medical Marijuana plants.
Deer Horn said the move into the Medical Marijuana sector is tied to the current market conditions in the resource industry. The company is planning to maintain its resource portfolio, but in light of the weak environment, it has been assessing new projects that have the potential to bring cash flow and bolster shareholder value.
The latest acquisition is just one of several potential projects that management is currently considering, the company said.
It will provide shareholders with updates on the status of other opportunities if and when material information becomes available, it added.
Last April, the Marijuana for Medical Purposes Regulations (MMPR) program was introduced by Health Canada to replace the Medical Marijuana Access Regulations (MMAR) license regime, which had proven difficult to monitor owing to the many thousands of small-scale growers it covered. The idea behind MMPR is to put licensed growing into the hands of a much smaller number of large commercial operations.
With the changeover scheduled to take place April 1, Health Canada chose at the last minute to hold over the MMAR program for an indefinite period owing to what it called “ongoing litigation and uncertainty arising from court decisions.”