Another Saskatchewan company that produces marijuana is in the process of being bought out, as British Columbia-based Choom announced that it has signed a letter of intent to acquire Flower Power Cannabis Pharms, described as a cannabis-focused "retail brand experience company."

Flower Power owns High Way 10 Cannabis Pharms Inc., a production site in southern Saskatchewan that is in the licensing phase.

High Way 10 has a 16,000-square-foot facility located on 120 acres of land, with room for future expansion, according to a press release. The facility is capable of producing about 1,500 kilograms of dried cannabis a year.

Choom's press release describes High Way 10 as an "advanced-stage cannabis production licence applicant."

Once Flower Power finishes tenant improvements within the building, it will be submitting an affirmation of readiness evidence package to Health Canada, according to the release, in hopes of receiving a cultivation licence.

With the legalization of marijuana expected later this year, Flower Power's intention is to have a hybrid of corporately owned and franchised dispensaries, as it vies for the right to receive a cultivation licence.

Chris Bogart, president and CEO of Choom, said the British Columbia-based company wants to increase its total production capacity, which was its goal in acquiring Flower Power.

"This acquisition further demonstrates our commitment to develop and acquire licence and production assets along with retail dispensary opportunities, helping to position us to scale-up rapidly to meet the anticipated Canadian recreation market demand," Bogart said.