Khiron Life Sciences Corp. has signed a definitive agreement for the acquisition of NettaGrowth International, as previously announced on January 25, 2019. According to the company, 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."
"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 one of the first companies 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", the company concludes.
For more information:
Khiron Life Sciences Corp.
khiron.ca