Chemistree Technology Inc (CSE:CHM) (OTCMKTS:CHMJF) told investors Tuesday it had cancelled its earlier announced planned investment into The Physician's Choice CBD (PCCBD) of Phoenix, Arizona.
As reported back in April, The Physician’s Choice CBD is a medical doctor-led company with a portfolio of nine hemp-derived CBD products that target pain management and wellness supplements.
READ: Chemistree says cannabis licensee partner in Washington State has full order book and is eyeing expansion
"I am disappointed to report that after many months of meetings, discussions and attempts to manage an increasingly frustrating process, Chemistree has decided that the proposed $1 million investment into what we believed was a compelling and unique company, cannot be made," said Karl Kottmeier, Chemistree president in a brief statement.
"While scientifically excellent, our due diligence identified significant issues with PCCBD management. We ultimately determined that we could not arrive at a go forward plan, nor a definitive agreement and accordingly the proposed arrangement has been terminated, with no funds having been forwarded."
Chemistree is an investor in the U.S. cannabis sector and its strategy is to acquire and develop vertically integrated assets, leveraging management's decades of expertise in the cannabis industry and corporate finance to own and operate licensed cultivation, processing, distribution and retail facilities.
In September this year, the firm said its Sugarleaf brand in Washington State had booked strong sales and is looking at expanding to keep up with rocketing demand for its products.
Sugarleaf has 18 different strains of high-quality cannabis being grown in rotation, including nine major strains and nine minor strains in smaller-batch production.
Chemistree said that Sugarleaf saw a 30% sales increase from April, a 36% rise in crop yield, and a 100% boost in retail client stores.
"These numbers are surpassing my expectations and I am really proud of the team at Sugarleaf for their focus on producing a high-quality cultivated product,” said chief cannabis officer Sheldon Aberman, who is also a board member of Chemistree Technology.