Medican Enterprises Inc (MDCN)

[lumi007]

PLEASE READ: Here is some of my DD on this topic

Both parties were in escrow for the 67k sqft facility
Escorw started 12/02/2014

here is the link for the actual escrow agreement

http://www.sec.gov/Archives/edgar/data/847015/000144586614001566/exhibit10_1.htm

They had 60 days to secure Zoning approval and had 120days to complete the DD, appraisal inspection, work out finance and secure all government approval

Technically speaking the 120 days escrow closure period puts them for a latest closing date of 04/01/2015...

I presume either they closed yesterday or are very near to closing...Now one might ask what happens if escrow does not close in time...if the delay is going to be just few days no worries let the escrow expire but you can still close everything as quickly as you can.which would put latest closing date of Tuesday 04/07/2015 in this scenario..

if the delay was going to be longer than a week we should have seen a filing for extension from them already..both the parties are interested here and its just a matter of time

they have put down 30k towards this escrow...they have secured zoning approval as stated in the escrow agreement..so i think they are very close to getting this done...if it was otherwise we would have heard by now...

GLTA

Food for thought:
So…what happens if you run over your escrow closing date?

The first situation is very easy. If both buyer and seller still want to complete the transaction, then everyone continues upon their merry way, and you close the escrow as quickly as you can. If the delay is only going to be a few days, there should be nothing to sign, no additional paperwork, and it just closes late. If the delay is going to be longer than about a week, then it is best to have the escrow company prepare an amendment extending the escrow to some point in the future agreeable to all parties. Remember, in this situation, all parties still want to proceed, so the solution is fairly simple. Close in few days, or extend with an amendment to cover the additional time needed.

But what if, when the closing date rolls around, one of the parties wants to cancel the escrow…and wants to use the failure to close on the appointed date as the reason for the cancellation? Now what?

Well, that complicates things a little, but the answer is still simple.

First, understand that the escrow period you set when the contract was agreed upon between the buyer and seller is not set in stone. It is merely a date upon which all parties are striving to complete the transaction. While there are exceptions to this (and those exceptions would have to be noted up front in the contract), the mere fact that the escrow has failed to close on its appointed date is not grounds for “divorce”.