Cannapharmarx, Inc. has completed its acquisition of Alternative Medical Solutions, Inc. (AMS)—an Ontario-based, late-stage marijuana licensed producer applicant—as part of its efforts to re-enter the cannabis space.

Hanover CPMD Acquisition Corp., a wholly owned subsidiary of Cannapharmarx, Inc., has acquired all issued and outstanding securities of AMS for total consideration of about $12.7 million, consisting of cash, common stock and a promissory note.

As part of the deal, Cannapharmarx has acquired AMS’s purpose-built property—which includes 48,750 sq. ft. of cultivation infrastructure contained within 6.7 acres of land in Hanover, Ont. While the facility’s exterior has been completed, construction of the modern interior has not yet started, but is expected to take an estimated 20 weeks.

The finished production facility will include 20, state-of-the-art grow rooms that are expected to maintain an annual production capacity of 9,500 kg of cannabis.

“Together with the remaining equipment needed to complete this expansion management estimates the Company will require approximately CAD$12.2 million in additional financing,” the company notes, adding that it currently does not have a firm commitment for financing, but is optimistic it will be able to raise the funds.

Currently operating in the pre-license inspection and licensing phase—stage five of six—AMS is working toward a fully approved licence, reports Cannapharmarx, an early-stage pharmaceutical company whose purpose is to advance cannabinoid research and discovery using proprietary formulation and drug delivery technology.

“Upon final construction of the AMS cultivation facility, Health Canada will inspect the facility and relevant operating procedures to ensure it meets the standards which have been approved in the application,” the press release states. “Upon completion of the licensing stage, AMS should receive approval from Health Canada to begin cultivation of marijuana,” the statement adds.

The AMS acquisition allows Cannapharmarx, a licensed producer platform, to enter the robust on-trend global marijuana segment. “The company anticipates proactively seeking additional business opportunities with other companies operating in the legal cannabis sector in Canada and such other jurisdictions where the same has been deemed legal,” the company reports.