Khiron Life Sciences Corp., an integrated medical cannabis company with its core operations in Latin America, announced today that it has signed a definitive agreement for the acquisition of NettaGrowth International Inc., as previously announced on January 25, 2019. NettaGrowth will, at the time of the closing of the acquisition, own all of the outstanding shares of Dormul S.A., a Uruguayan company that has obtained the first licence to produce and export medical cannabis with THC for commercialization in Uruguay. As consideration for the acquisition of NettaGrowth, on closing, Khiron will issue 8,498,821 common shares to the shareholders of NettaGrowth at a deemed price of $1.61 per common share.
Alvaro Torres, CEO of Khiron, comments “This acquisition adds considerable capacity and product diversity potential to the Khiron portfolio of assets. As the first country to legalize cannabis for adult use purposes, these Uruguayan licences provide us the opportunity to address a broader demographic of consumers and export products to key regions of the world. Compared to the extract-only medical market of Colombia, the Uruguayan regulations permit the domestic and international distribution of flower. This is an excellent complement to our product focus in Colombia. I would like to thank all individuals involved in finalizing this definitive agreement and look forward to moving this transaction to close.”
Uruguay was the first country to establish legislation for cannabis and Dormul has secured a medical cannabis cultivation and commercialization licence for the jurisdiction, with a cultivation capacity of up to 120 tonnes and 170,000 plants. In addition, Dormul has an application pending for an extraction licence. Upon receipt of its extraction licence, Dormul is expected to become the first company in Uruguay to be approved for medical cannabis-based CBD oils for both domestic and export purposes. With a strong commitment to research and development, Dormul has established a strategic partnership with the prestigious Institut Pasteur de Montevideo, a prestigious foundation formed between the Uruguayan and French governments focused on the research and development of cannabis product. The foundation was recently recognized by the Uruguayan Ministry of Industry for the important social and economic impact its operations are anticipated to have for the country.
In addition, Mr. Michael Beck, experienced capital markets professional and entrepreneur, and Mr. Joseph Mimran, experienced brand builder and entrepreneur, have agreed to join the board of Khiron and Khiron Colombia, respectively. The appointments are conditional upon the completion of the acquisition and subject to TSXV Venture Exchange Inc. approval.
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Upon the closing of the acquisition, a finder’s fee of 420,000 common shares will be paid to Oisin Fanning. Completion of the acquisition, and the issuance of the finder fee shares, remains subject to customary closing conditions including, but not limited to, anti-money laundering approval from the Uruguayan government and final approval of the TSXV.
Date: April 15, 2019
Source: Yahoo Finance