News roundup December 2018
A monthly summary of the key events taking place in the Colombian medicinal cannabis industry
Finance and Acquisitions
Chemesis International signs binding letter of intent to acquire La Finca Interacviva-Arachna Med
In early November, Chemesis announced its binding intention to acquire 100% of Colombian cannabis producer La Finca Interacviva-Arachna Med SAS. The acquisition will take place for CAN$10.3 million, in a combination of cash and shares. La Finca has access to 1,000 acres of land in El Cerrito, Valle del Cauca as well as re- search alliances with Francisco José de Caldas University and the National University. La Finca also makes three cosmetic products, all approved by the national food and drug authority, INVIMA. Chemesis International, which currently has operations in Puerto Rico and California, aims to use its worldwide reach to establish and grow new markets.
Khiron enters Peruvian market with commercialization approval for Kuida
Khiron Lifesciences Corp. announced on November 27 they had received commercialization approval from the Directorate of Medical Devices and Health Products, a specialized unit at the Peruvian General Directorate of Medications, Supplies and Drugs (DIGEMID). Combining the Peruvian population of 32 million with Colombia and Mexico, the company is looking at a potential population of almost 200 mil- lion in Latin America. Khiron continues to focus on the Latin American market, estimated at 620 million potential consumers, as now more than six countries in the region have legalized medicinal cannabis.
Aurora receives final regulatory approval and completes acquisition of ICC Labs
After announcing the acquisition of Latin American player ICC Labs in November, Aurora has now completed the acquisition for a purchase price of approximately CAN$290 million, with a share price of CAN$1.95 per share. ICC Labs is now a wholly-owned subsidiary of Aurora, after receiving approval from the Uruguay- an Institute of Cannabis Regulation and Control. This places Aurora, who have acquired ten companies in the past two years, as a market leader in Latin America. Based in Uruguay, ICC boast the first GMP compliant processing facility in Latin America as well as an exclusive portfolio of CBD strains and a broad portfolio of dried flower and higher margin products.
Medcann registers first five strains with the Colombian Agricultural Institute (ICA)
With only a few weeks left for companies to register their strains with the ICA, Medcann’s CEO, Jon Ruiz announced in November that they were the first compa- ny to register five strains of psychoactive cannabis. The company is preparing their first commercial harvest in January 2019, which is expected to flourish by April, allowing them to begin exporting around June 2019, according to Ruiz. In an inter- view with Colombian finance magazine, Portafolio, he said the company had started with just ten hectares and now have the capacity to grow up to 89 hectares.
PharmaCielo receives seeds from ancestral Arhuaco community
In late November, PharmaCielo met with indigenous leader “Mamo” Arhuaco, Luis Guillermo Izquierdo, in a symbolic act to receive ancestral cannabis seeds from the community. The seeds have been treasured by the Arhuaco indigenous people for 500 years, and were granted exclusively to PharmaCielo for cultivation. According to statements from the Arhuaco leader, PharmaCielo created the first alliances between the private sector and social organizations in the cannabis industry, as well as fulfilling alliances with UN sustainable development objectives. There was no further information about the seed registration process for the granted seeds.
Pideka SAS is granted authorization for indoor cultivation
One of the first licensed cannabis producers in Colombia, Pideka SAS, was recently granted authorization to build two ware- houses for indoor cannabis cultivation in Cundinamarca. International Operations Director, Borja Sanz de Madrid, recently announced that construction of the first warehouse has already began a few miles away from Bogotá, and would be finished by February 2019. With an investment of between USD$8.5 and 9 million and equipment imported form the USA and Canada, Pideka expects to have five ware- houses built in the next two years, to reach a sales goal of USD$75 million.
FCM Global announces final large-scale planting phase at La Ceja
At the end of November, Colombia-based FCM Global SAS, announced that it had begun its final large-scale planting phase at its cultivation greenhouse in La Ceja, Antioquia. The company is a strategic ally and partner of Canadian life science company, Orion Nutraceuticals. FCM has capacity to cultivate over 40,000 plants in their indoor greenhouse, with environ- mental control that meets GAP standards. By using modern agro-tech methods resulting from the partnership with Orion, FCM expects to realize three to four har- vests per year, with a production cost from clone to dried flower of under US 4¢ gram.