MJ Biz Article: Why WeedMD sold a cannabis subsidiary for CA$2.5 million after buying it for CA$55 million

Nice spin !!!

MJ Biz report

Aylmer, Ontario-based WeedMD announced the sale of its Starseed Medicinal subsidiary in Bowmanville, Ontario, for 2.5 million Canadian dollars ($2.1 million) in cash to Final Bell Canada, less than two years after the cannabis producer paid more than CA$50 million to acquire the business.

Included in the deal is a leased 14,850-square-foot indoor facility in Bowmanville, which is licensed by Health Canada for the cultivation, processing and sale of cannabis.

WeedMD said it retained all aspects of Starseed’s medical cannabis business, including the Starseed Medicinal brand, and proceeds of the sale will be used to pay down debt.

“What we did over the course of the last year is we stripped away anything that was of value in the (Starseed) facility,” WeedMD Chief Strategy Officer Jason Alexander told MJBizDaily, adding that the company retains all intellectual property associated with the business and the Starseed medical platform.




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