MedReleaf Corp. (TSX: LEAF) has a new South American subsidiary. The Markham, Ontario-based producer of cannabis-based pharmaceutical products, announced last week it has acquired MED Colombia SAS, in Bogota. The price was $3,120,000.
MED Colombia has licenses in Colombia to cultivate cannabis and produce cannabis oil extracts, along with a library of cannabis genetics.
With this acquisition, MedReleaf is able to produce low-cost, high quality raw materials to serve its global supply chain, as well as the domestic Colombian medical cannabis market. Colombia legalized medical cannabis in 2015, and MedReleaf has had a team operating there since 2017.
On a trailing 12-month basis, MedReleaf generated revenue of $215.9 million, EBITDA of $2.6 million, and a net loos of $7.5 million.