AtlantiCann Medical Inc.(AMI) president Christine Halef announced in a news release Thursday that AMI has decided to re-locate their proposed medical marijuana license application with Health Canada to a BANC-owned property in Halifax. BANC is a successful real estate developer based in Halifax and is owned by Halef's father Besim.
"This was not an easy decision," Christine Halef said in the release, "but we are convinced that it is in the best interest of our investors and the future success of the company."
In 2013, AMI concluded a lease agreement with Bowood, a company owned by Ralston MacDonnell, for the development of the proposed AMI facility in the former gymnasium of the Province’s Boys School in Shelburne. Since then, AMI has kept local government apprised of its progress in the lengthy Health Canada license application process.
AMI learned in February of this past year that its arrangement with Bowood to lease the Shelburne site for its medical marijuana facility had been compromised by Bowood’s failure to pay its taxes. The result was a tender call by the Municipality to re-coup taxes.
In an effort to hold on to the gymnasium site that AMI had been working on for more than three years, AMI arranged for BANC to place a bid to secure the gymnasium in the June tender call which the Municipality rejected. Over the next four months, AMI tried in vain to have the Municipal council reverse its June decision of Council not to accept the BANC tender.
"These events, uncertainty and delays prompted AMI to begin a fundamental re-assessment our original decision in 2013 to build its medical marijuana facility in the Bowood gymnasium in Shelburne," AMI said in the release.
"Our due diligence review shows us that Bowood’s ability to redeem the property for an additional six month period will continue to raise uncertainty and delay investments in our medical marijuana facility," the release added.
In addition, says AMI, the intervening years and the deteriorating condition of the gymnasium were important considerations. The company also noted continuous vandalism, neglect, leaky roofs, flooded basements of the eight remaining buildings that had to be acquired to secure the gymnasium were also considerations in the decision to relocate to Halifax.
BANC was the successful bidder in a questionable bidding process for the Bowood property that, according to the attorney for local developer Ken Anthony, who was high bidder in the tender offer.
MODS has not responded to several calls to officials there seeking confirmation as to whether BANC had deposited the required funds by day's end Wednesday to secure its bid.
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