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Tweed Marijuana (V.TWD) buys marijuana producer as it struggles to fill orders

Canadian Press, The Canadian Press
4 Comments| June 19, 2014


OTTAWA - Tweed Marijuana Inc. (TSX: V.TWD, Stock Forum) says it has bought Prime1 Construction Services Corp., owner of Park Lane Farms, for $3.6 million with the view to becoming a national provider.

Prime1 operates a medical marijuana greenhouse in Niagara-on-the-Lake, Ontario.

Ottawa-based Tweed says the acquisition will add more greenhouse space to its operations.

But industry insiders question the move as Tweed has struggled to get its much vaunted 150,000 square foot warehouse grow facility firing on all cylinders.

The company has sent out small amounts of product to consumers thus far but has had quality control issues and brought in outside consultants to attempt to fix problems that have limited their ability to produce thus far.

The move to buy an existing growhouse without an MMPR license, when the company's main facility is, at present, not yet entirely utilised, could be seen as a move to buy its way out of trouble.

Tweed says Prime1 Construction Services Corp. is going through the Health Canada review process to become a licensed producer of medical marijuana. The company says the acquisition will help it become a geographically diversified, multi-licensed public operation in Canada.

Tweed Marijuana is Canada's first publicly traded medical marijuana company and started trading on the Toronto Venture Exchange in April, and has a market capitalization of $114.6 million.

New regulations regarding medical marijuana were enacted by the federal government April 1. The move opened production up to the commercial sector.

As of late last month, Health Canada had received more than 850 applications from companies wanting to be medical marijuana suppliers.

Other companies, such as Medican (OTO:MDCN, Stock Forum), Creative Edge (OTO:FITX, Stock Forum) and Supreme Pharmaceuticals (CSE:C.SL, Stock Forum), are planning sizable grow facilities that will, if completed and licensed, double Tweed's current size.

-- With file by Chris Parry



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Comments

ValentinKushnir
There is the new company which grows marijuana for medicine. And people can buy shares of it. Does anybody know about it Alphala Corp. (ALPC)?
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June 19, 2014
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ValentinKushnir
Look atthis page, is about their shares http://finance.yahoo.com/q;_ylt=Ah869LpkJzy_L0E_KkMu526iuYdG;_ylu=X3oDMTBxdGVyNzJxBHNlYwNVSCAzIERlc2t0b3AgU2VhcmNoIDEx;_ylg=X3oDMTBsdWsyY2FpBGxhbmcDZW4tVVMEcHQDMgR0ZXN0Aw--;_ylv=3;_ylc=X1MDMjE0MjQ3ODk0OARfcgMyBGZyA3VoM19maW5hbmNlX3dlYl9nc190cmZvbnQEZnIyA3NhLWdwBGdwcmlkAwRuX2dwcwMxBG9yaWdpbgNmaW5hbmNlLnlhaG9vLmNvbQRwb3MDMQRwcXN0cgMEcXVlcnkDQUxQQywEc2FjAzEEc2FvAzE-?p=http%3A%2F%2Ffinance.yahoo.com%2Fq%3Fs%3DALPC%26ql%3D0&type=2button&uhb=uhb2&...
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June 20, 2014
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wallstreet12345
This company Cavan Venture is moving forward with Marijuana and have top board of directors to make it happen. Check it out. V.CVN
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June 20, 2014
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AlexBBB
what ist? never heard of it! strange .... where u can find more information?
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June 20, 2014
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