MediPharm Labs Corp. and Rubicon Organics Inc. say they are one step closer to closing a deal for MediPharm to sell the former Canna Farms facility to Rubicon.
Both companies announced the removal of all conditions precedent on May 22, related to the previously announced agreement to sell Rubicon the BC facility for $4.5 million in cash.
Medipharm first took over ownership of the 47,500-square-foot indoor Canna Farms cultivation facility in Hope, BC, as part of its 2023 acquisition of Vivo Cannabis, which had acquired Canna Farms in 2018.
David Pidduck, CEO of MediPharm, says the sale will bolster MediPharm’s already strong cash position and virtually debt-free financial status.
“The $4.5 million in cash proceeds from divesting non-core assets supports our roadmap to deliver long-term value for shareholders and partners, enabling continued focus on accelerating international growth and exploration of key acquisition opportunities.”
Rubicon, which currently operates a large greenhouse facility in BC, expects the new facility will allow the company to expand its capacity significantly.
“Our acquisition of the Hope Facility marks a pivotal step forward for Rubicon Organics,” said Margaret Brodie, CEO. “The Hope Facility enhances our ability to meet growing demand for our premium brands, accelerate innovation, and drive long-term value for shareholders.”
Rubicon estimates annual production capacity of the Hope Facility to be up to 4,500 kgs and expects its first harvests by the end of 2025, with revenue realized in early 2026.
MediPharm Labs Corp. reported net revenue of $10.8 million, gross profit of nearly $4.2 million, and a net loss of $387,000 in the three months ending March 31, 2025 (Q1 2025).
Rubicon Organics recorded net revenue of $14.2 million in the three months ended December 31, 2024 (Q4 2024), an increase of 42.1% from the same period in the prior year and its highest-ever quarterly revenue.
MediPharm is also currently facing pressure from a dissident proxy circular filed on May 7, 2025, by Apollo Technology Capital Corporation, outlining Apollo’s intention to nominate six individuals for election to MediPharm’s board of directors at MediPharm’s upcoming annual and special meeting of shareholders, scheduled for June 16, 2025.
