ICC International Cannabis Corp (CSE:WRLD.U) (OTCMKTS:WLDCF) announced Tuesday that it has inked a pact to acquire AgraFlora Organics International Inc’s (CSE:AGRA) (OTC: PUFXF) Colombian pharmacy operation, Farma Swiss S.A.S for $250,000 in stock.
Through the all-stock deal, International Cannabis will get control over a coveted brick-and-mortar business in Latin America, as well as existing high-profile commercial agreements, further boosting the company’s cannabis cultivation capabilities and logistical infrastructure.
READ: ICC International Cannabis, AgraFlora to bring native Colombian cannabis strains to the global market
The addition of a premier downstream Colombian asset, the company said in a statement, secures a platform for the distribution of medical cannabis and cannabinoid-derived products within Colombia.
Farma Swiss operates a licensed pharmacy strategically situated within a high traffic, commercial neighbourhood of Medellin, Colombia. Farma Swiss’ fully licenced pharmacy operation is equipped with ancillary, value-added services which include:
• An inbound prescription call centre, augmented by advanced supply chain and CRM software suites
• A domestic delivery service, providing local clientele with an array of medical and over-the-counter products
• Onsite health related services and consulting
• Proposed cannabinoid education
• Virtual channel capabilities
“The proposed acquisition of Farma Swiss represents yet another material development within the LATAM theatre for ICC,” said International Cannabis CEO David Shpilt in a statement.
Shpilt said the acquisition gave the Vancouver-based cannabis company the opportunity to leverage its “first mover advantage” within the Colombian medical cannabis market by servicing more than 5 million potential patients.
The acquisition will lead to the integration of Farma Swiss’ pharmacy platform with ICC’s 13-hectare cannabis centre of excellence and catalogue of native Colombian cannabis genetics.
“International Cannabis will continue to solidify its leadership position within Colombia’s highly competitive medical cannabis marketplace, while streamlining patients access to our unique formulations,” said Shpilt.
Transferring a library of 20 unique strains
Last month, AgraFlora transfered its portfolio of exotic, native Colombian cannabis genetics to International Cannabis for marketing and global distribution. As part of the deal, the company is transferring a library of 20 unique strains that include both prominent tetrahydrocannabinol (THC) and cannabidiol (CBD) varieties to International Cannabis. Some of the highly sought-after strains are Caucana, Purpura, Medellin Gold and Maroc.
“This strategic transaction further crystalizes our alliance with ICC with regards to our collaborative pursuit of the burgeoning global cannabis trade,” said AgraFlora Organics International CEO Brandon Boddy. “Monetizing of our flagship pharmacy operation to a trusted ally, permits us to streamline our international cannabis operations while focusing on the continued retrofit of our world class greenhouse complex in Delta, BC.”
International Cannabis said it is actively “investigating complementary pharmacy related assets” within Colombia that may serve as synergistic accompaniments to its acquisition of Farma Swiss.
“We are excited to increase our shareholdings in ICC as they continue to execute upon their international business mandate and embark upon realizing material cash flows,” said Boddy.
ICC is developing cultivation platforms for extraction, formulation and distribution of cannabis and has operating assets in the UK, Europe, Australia, South America and Africa.
Contact Uttara Choudhury at [email protected]