Replies to post #1397 on Medican Enterprises Inc (MDCN)

[Seekingalphacontributor]

It is my impression that MDCN was raising the funds from private investors.

The incentive for an investor to go through MDCN rather than straight to Zenabis is the attractiveness of being able to realize a return a lot more quickly through the capital markets rather than waiting 5-10 years.

The other BIG difference for Zenabis is that its merging with a US ticker not a Canadian ticker. Other MMPRs do not have the benefit of accessing capital from US investors. It is a lot more difficult for US investors to buy stock in tweed than it is to buy stock in MDCN/Zenabis/IHMML

What you keep forgetting is that these three parties developed this plan together. It wasn't like Medican suddenly stepped into the picture out of no where. These three companies, Monark Group, IHL, and Medican, have been developing a plan to enter the medical marijuana space since last year.

Zenabis doesn't need Medican, unless Medican has money to fund Zenabis.

So why would Zenabis maintain a partnership with Medican if Medican didn't have money? One theory is that Medican does have significant funding but conditioned on Zenabis getting a licensed. Does that make sense?

Medican may have a funder willing to pay for the entire subscription agreement but doesn't want to cough up all of the money until the license has been announced. But maybe this is the same investor that gave Medican a $1 million loan because he does believe in the company and wants to support its operating costs while it is waiting to be licensed.

If you had 47 million in cash to give away, wouldn't you want to make sure that you were giving it to a company licensed? Doesn't that make sense? And if you are Zenabis, and you know of said investor willing to fund the project but only through Medican (because of the attractiveness of going through US capital markets), wouldn't you want to maintain a business relationship?

Perhaps it is Zenabis that needs Medican and not the other way around. Perhaps Medican also has other ventures lined up if Zenabis doesn't work out?