Staff
Canadian-based CannaRoyalty Corp. (CNNRF) announced that one of its investee companies, Alternative Medical Enterprises, LLC often called AltMed closed a private placement financing of $35.4 million. In a company statement, CannaRoyalty said it made a $1.5 million equity investment in AltMed in 2015 and that the post-money valuation of this current financing represents a growth in value of approximately 215% for CannaRoyalty shareholders.
AltMed Chairman and CEO Mike Smullen added, “The financing will enable us to build out our 25 licensed dispensaries in Florida, expand our cultivation capabilities and increase our footprint in Arizona. We anticipate significant growth over the next few years as we expand our licensed facilities to meet the needs of medical patients in Florida and Arizona. We are grateful to CannaRoyalty and CR Advisory for their expertise and assistance in getting our company to this stage.”
AltMed is a pharmaceutical company based in Sarasota, Florida and currently has vertically integrated cannabis operations in Arizona and Florida with a pipeline of expansion opportunities to scale operations significantly in the US medical cannabis market and expand into the international market. Additionally, the company owns MÜV, a brand of cannabis-infused products that was launched in Arizona in 2016.
MUV has a full range of premium smoke-free cannabis products including topicals, inhalers, vaping products, shatter and crumble as well as oral sprays and tinctures. CannaRoyalty has a 3.5% royalty on global net sales of the following MÜV products; transdermal patches, metered dose inhalers, and patent-pending transdermal gels. The company also has the right to license MÜV products in California and Canada.
“Congratulations to Mike Smullen, Matt Duffy and the entire team at AltMed for the tremendous growth they have generated this year, as well as the international recognition that their MÜV product line has received,” said Marc Lustig, CEO of CannaRoyalty. “Our investment alongside the AltMed team has driven tremendous value for our shareholders and is representative of the unique investment opportunities CannaRoyalty has been able to participate in as one of the first movers in the U.S. cannabis industry. We expect to realize further value from our rights to the MÜV product suite, particularly as we build our presence in Canada and other jurisdictions.”
