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Wednesday, Sep 28, 2022
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Business

CannMart Medical shutting down operations

Patients are being encouraged to transfer to Mendo Cannabis

CannMart Medical shutting down operations
Screenshot of cannmart.com

Canadian online seller CannMart Medical is shutting down, and transferring its patients to Mendo Cannabis by next week.

This is the second medical cannabis provider in the country to close shop in less than a month.

CannMart Medical sent an email to its registered patients on Wednesday, saying they can place final orders until Feb. 11, and can transfer their file to Mendo.

On Wednesday, CannMart-owner Lifeist Wellness Inc. (TSXV: LFST) (FRANKFURT: M5B) (OTCMKTS: NXTTF) said that shutting down medical sales will align resources for more “promising, near-term opportunities.”

“The regulatory and consumer conditions for medical cannabis in Canada have evolved such that achieving success would require significant and ongoing investments without a growth trajectory and near-term returns to support it,” Lifeist CEO Meni Morim said in a statement.

To ease the transfer of patients, Lifeist has hired financial advisor Kronos Capital Partners to oversee agreements related to the transfers.

Medicibis, doing business as Mendo Cannabis, said Wednesday it will also help CannMart patients transition to its platform by covering the costs of renewal for those with medical documents that have expired or are about to, as well as offering a 10-per-cent discount on new clients’ first two orders.

Mendo owns a 20,000-square-feet facility near Montreal, and operates an online portal for patients across Canada.

Meanwhile, Morim says his company will focus on recreational sales via its business-to-business distribution and manufacturing segments, as well as a recently launched nutraceutical initiative.

“CannMart’s B2B recreational cannabis platform (as opposed to its business-to-consumer medical platform), which includes the distribution and logistics business together with CannMart Labs, is the overwhelming driver of our cannabis business,” CannMart CEO Daniel Stern said.

Stern says that about 90 per cent of cannabis revenue for the nine months ended Aug. 31, 2021, and for the 12 months ended Nov. 30, 2020, comes from the B2B recreational platform.

Read more: Beloved medical cannabis seller Shelter Market shutters operations

Read more: Over 90% of Canadian cannabis patients want policy change: survey

CannMart-owner Lifeist also owns an extraction facility, an Australian retailer of vapes and pot accessories as well as a consumer wellness company.

Last week, Mendo said it was also welcoming patients from popular B.C.-based medical seller Shelter Market. Its affiliated company Agro Greens, based in Saskatchewan, is continuing its recreational operations.

 

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