News roundup: August 2019
A monthly summary of the key events taking place in the Colombian medicinal cannabis industry
Finance and Acquisitions
Avicanna starts trading on TSX
Canadian cannabis producer Avicanna started trading on the Toronto Stock Exchange last month under the ticker AVCN, making it the first company with Colombia-based cultivation assets listed on this senior market. Following the listing on July 18, stakeholders have agreed to two lock up agreements, under which they will not sell, trade or pledge any securities of the company for periods of 39 months and four months respectively. After these periods, the shares will be released in tranches.
Blueberries Medical announces CAD$3 million non-brokered private placement
Blueberries Medical Corp (CSE: BBM) announced a non-brokered private placement to raise CAD$3 million for business expansion and working capital. The offering of up to 12,000,000 units at a price of CAD$0.25 per unit will close on August 27. Each unit will consist of one common share in the company’s capital and one share purchase warrant, which will entitle the holder to acquire one share at a price of CAD$0.35 for the next 24 months.
Clever Leaves sends first Colombian hemp-based shipment to UK
Colombian cannabis producer Clever Leaves sent the first legal cargo of Colombian manufactured high-quality hemp oil to the UK. The ESENIA brand is a wellness product that will be available for sale in the UK and the EU this fall. Around four to six thousand bottles will be shipped throughout August to be commercialized in the EU.
Avicanna announces joint venture with Sigma Analytical Services Inc.
Avicanna (TSX: AVCN) and Sigma Analytical entered a joint venture agreement to build the first GMP/GLP laboratory in South America, which will test cannabis and cannabis-based products in Colombia. The results will provide information on pesticides, residual solvents, microbials, cannabinoids, and more. They expect to begin operating in the fourth quarter of 2019 and provide testing services for Avicanna’s two subsidiaries (Santa Marta Golden Hemp and Sativa Nativa SAS).
PharmaCielo joins tracking and verification initiative
PharmaCielo (TSXV: PCLO) is the first non-Canadian cannabis company to join a pilot medicinal cannabis seed-to-sale tracking program, along with TruTrace Technologies & Shoppers Drug Mart. The Canadian program provides stakeholders with the ability to track and authenticate a product or batch back to the cannabis plant it came from. Using blockchain technology, the initiative will create a central hub for data collection, registration and tracking from plant DNA to the final product.
Khiron launches pilot program with Colombian health insurance provider
The Latin American Institute of Neurology and the Nervous System (ILANS), a clinic network wholly owned by Khiron Life Sciences (TSXV: KHRN), will partner with Colombian insurance company EPS SURA to launch a four-month pilot program. The pilot program will work with an initial group of 450 patients and focus on neurological pathologies.