$MDCN LAS VEGAS, April 17, 2015 – Medican Enterprises Inc. (MDCN) (“Medican” or “the Company”), a merchant bank and bio-pharmaceutical company in the emerging global marijuana industry, is pleased to announce that it continues to raise capital in the market place and has extended the option to purchase two facilities in the Phoenix, AZ, area.
The first facility located in Phoenix has a total retail footprint of 7,200 sq. ft. and is currently leased to a licensed medical marijuana dispensary. Subject dispensary currently pays $15,000 a month in rent, plus additional rent of 30% of gross sales. A real-estate appraisal conducted by Kalinowski & Associates dated December 24, 2014, values the property at $2,385,000. Note this is a conservative valuation as it only considers the guaranteed lease income of $15,000 a month and not the additional rent from gross sales. Business at this dispensary is progressing solidly, and Medican believes it has tremendous potential to increase sales due to the growth of the surrounding area.
The second site is also located in the Phoenix area and has a total building footprint of 66,000 sq ft. Medican plans to acquire the site and lease it to a licensed medical marijuana grower as a fully built facility. Commercial terms pertaining to the lease are still being finalized. An appraisal report by Kalinowski & Associates dated February 9, 2015, confirms an evaluation of $2,340,000 without any additional consideration as a medical marijuana facility.
“We appreciate the patience demonstrated by the sellers of the two sites. It is apparent that industry participants believe in our vision, and we are keen to close both transactions,” stated Ken Williams, CEO of Medican Enterprises.
Medican Enterprises continues to evaluate new business opportunities on a regular basis and marijuana business opportunities with Medican Nations Inc., our first nations division.
In December 2014, the US Department of Justice instructed all United States Attorneys not to prevent the growing or sale of marijuana on sovereign tribal land. Timothy Purdon, the U.S. attorney for North Dakota and the chairman of the Attorney General’s Subcommittee on Native American Issues, stated, “The tribes have the sovereign right to set the code on their reservations.”
Medican is aware of the problems alcohol has brought to Native Americans and desires to work with tribes in developing cannabis in ways that protect the First Nations and respect their rights, including the right not to develop it.
