News Roundup June 2019
A monthly summary of the key events taking place in the Colombian medicinal cannabis industry
Blueberries receives approval to sell five CBD wellness products
Blueberries Medical (CSE: BBM) received approval from INVIMA for the production, sale and export of five CBD-based health and wellness products. The initial suite of products include a face cream, lip balm, body cream, beauty balm and cannabis oil shampoo. Product launch is expected to take place the second half of 2019, upon completion of branding and distribution agreements.
Khiron announces completion of new lab facilities in Colombia
Khiron Life Sciences (TSXV: KHRN) completed construction and began operations at their new facilities in Ibagué, Colombia. The 14,000 sq ft lab facilities have an initial capacity of three tons of extract per year, and are GMP and ISO 17025 compliant.
Blueberries and SLANG enter strategic partnership
Blueberries Medical (CSE: BBM) signed a Memorandum of Understanding with SLANG Worldwide (CSE: SLNG) in which Blueberries may license SLANG’s portfolio of cannabis brands and use SLANG’s industry know-how and IP to formulate cannabis products in Colombia and Argentina. The parties also agreed to collaborate on the commercialization of products in Latin America in the future. Lastly, the agreement grants Blueberries an exclusive right to sell and distribute SLANG products in Colombia and Argentina.
Finance and Acquisitions
Medcolcanna starts trading on TSX:V
Colombia-based medical cannabis company, Medcolcanna Organics (TSXV: MCCN) began trading on the TSX Venture Exchange under the symbol MCCN on May 23. The company also announced it had entered an agreement to purchase Innovative CBD Products BV Nether- lands-based company owns several CBD formulations and the intellectual property of cannabis products for Crohn’s disease, insomnia and rectal inflammation. Medcolcanna agreed to pay the company’s owner, Mr Hids, USD$900,000 payable in Medcolcanna shares at a deemed price of USD$0.25 each.
PharmaCielo to acquire Creso Pharma
PharmaCielo (TSXV: PCLO) entered a scheme implementation agreement to acquire all issued and outstanding shares and listed options of Creso Pharma Ltd (ASX: CPH) for approximately AUD$122 million. PharmaCielo will pay AUD$0.63 per share, completing a premium 50% over the closing trading price on May 3, 2019. The purchase price for the Creso Pharma shares will be satisfied by the issuance of PharmaCielo common shares priced at CAD$7.6166 per share, representing an exchange ratio of 0.0775 PharmaCielo shares per each Creso share.
ICC International Cannabis Corp to ac- quire AgraFlora’s Colombian pharmacy operation
ICC International Cannabis Corp (CSE: WRLD.U) entered a binding LoI with AgraFlora Organics International (CSE: AGRA) to acquire 100% of Farma Swiss SAS, AgraFlora’s Colombian pharmacy operation. Farma Swiss currently oper- ates a licensed pharmacy in Medellín and owns a 13 ha cannabis center of excellence. The acquisition adds to existing commercial agreements, including AgraFlora’s assignment of 20 unique Colombian genetics to ICC, and a five- year term agreement in which ICC may purchase up to 100,000,000 grams of premium dry cannabis flower from Agra- Flora’s Delta Greenhouse Complex.
Recreational cannabis bill to be pro- posed in Colombian Congress
On May 22, congressmen from seven parties presented an inter-parliamentary agreement to develop new drug policy legislation on. The proposal, lead by Senator Gustavo Bolívar, includes the legalization of recreational cannabis, development of the drug policy in the Peace Agreement with FARC and calls for a general shift from the prohibitionist policy against drugs. The agreement was supported by senators from: FARC party, Partido Verde, Partido de la U, Cambio Radical, Polo Democrático, Partido Liberal and UP.