Medbox partners with Canadian medical marijuana R&D lab
Medbox has announced the signing of a term sheet with a medical marijuana research and development laboratory licensed and permitted by Health Canada.
According to the company, Medbox has been engaged in an ongoing consulting role as the lab transitions to a cannabis producer and distributor. Currently, the laboratory is one of only several allowed to cultivate and study cannabis in Canada for use in medicinal applications.
As we’ve reported, Medbox specializes in biometric vending machines that rely on fingerprint data to verify the identity of users. It has so far focused largely on the medicinal marijuana market.
“The laboratories that possess a level 6 clearance and exemption to the Controlled Drugs and Substances Act in Canada are truly the best suited to transition into the production and distribution model that Health Canada has adopted,” Bruce Bedrick, CEO of Medbox said. “This consulting arrangement and business partnership is by far the most potentially lucrative deal we have executed to date and has an uncapped earning potential over many years. We are extremely excited about working alongside this laboratory as they start legally selling their medicine to the patients of Canada.”
According to Medbox, the company is banking on co-branding and joint development of cannabis infused formulations and products in the Canadian market, consulting revenue, the development and placement of Medbox vending machines as well as the expansion of the company’s market to allow for equipment placements in doctors’ offices and cultivation centers.
Since then, the company has revised its financial projections for the period through 2016. The revised projections show over $6 million in increased revenue for fiscal year end 2013, with subsequent increases throughout the next 3 years, culminating in a leap from initial projections of $48.6 million by end of fiscal year 2016 – up to a hefty $72.7 million.
Earlier this year, Medbox acquired a significant equity stake and entered into a licensing agreement with Bio-Tech Medical Software, a corporation that has developed a seed-to-sale tracking system as well as an SAS70-approved biometric e-prescribing technology.
The company has also acquired 50% of MedVend, another bio-tech company that has patented an automated medicine dispensing machine.