ICC International Cannabis has entered into a binding Letter of Intent with AgraFlora Organics International to acquire 100 per cent of AgraFlora’s Colombian pharmacy operation, Farma Swiss S.A.S.
According to the company, the Agreement provides International Cannabis with a coveted LATAM brick-and-mortar presence, as well as existing high-profile commercial agreement, further augmenting the Company’s THC/CBD cultivation capabilities and logistical infrastructure. ICC’s addition of a premier downstream Colombian asset thus conceives a compliant and secure platform for the distribution of medical cannabis and cannabinoid-derived products within Colombia.
The company anticipated that ICC will deploy a custom-made pharmacy compound strategy, originating with its inaugural Farma Swiss Colombian location.
"Farma Swiss operates a licensed pharmacy strategically situated within a high traffic, commercial neighbourhood of Medellin, Colombia," the team with the company explains. Farma Swiss’ fully licenced pharmacy operation is equipped with the following ancillary, value-added services:
- Inbound prescription call centre, augmented by advanced supply chain and CRM software suites;
- Domestic delivery service, providing local clientele with a vast array of medical pharmaceutical and over-the-counter (“OTC”) products;
- On-site health related services and consulting;
- Proposed cannabinoid education and doctor detailing staging ground; and,
- Virtual channel capabilities.
David Shpilt, Chief Executive Officer of International Cannabis states: “The proposed acquisition of Farma Swiss represents yet another material development within the LATAM theatre for ICC; affording us the opportunity further leverage our first mover advantage within the Colombian medical cannabis market by directly servicing more than five million potential patients within the country."
"By integrating Farma Swiss’ intuitive pharmacy platform, with our 13-hectare cannabis centre of excellence and a preeminent catalogue of native Colombian cannabis genetics, ICC will continue to solidify its leadership position within Colombia’s high competitive medical cannabis marketplace, while streamlining patients access to our unique formulations.”
ICC’s acquisition of Farma Swiss augments recently concluded commercial arrangements between AgraFlora and ICC, completing the Companies symbiotic vertically integrated global cannabis mandates:
- Five-year term off-take agreement whereby ICC may purchase up to 100,000,000 grams of premium dried cannabis flower from AgraFlora's Delta Greenhouse Complex; and,
- AgraFlora’s assignment of its library of 20 unique Colombian cannabis genetics to International Cannabis, including prominent THC and CBD varietals, such as:Caucana;
- Medellin Gold;
Brandon Boddy, Chairman and Chief Executive Officer of AgraFlora notes: “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."
According to the company, International Cannabis is also actively investigating complementary pharmacy related assets within Colombia that may serve as synergistic accompaniments to its acquisition of Farma Swiss. Further details will be provided in due course as due diligence progresses.
As per the terms of the Agreement, International Cannabis will issue AgraFlora such number of common shares in the capital of ICC that is equal to $250,000 based upon the five-day variable weighted average price of ICC’s common shares for the five trading sessions prior to the announcement of the agreement.