News Roundup September 2018

A monthly summary of the key events taking place in the Colombian medicinal cannabis industry

Finance and Acquisitions

Khiron announces closing of $12.93 million prospectus financing including full exercise of over-allotment option

On September 12, 2018, Khiron Life- sciences Corp. announced it closed its prospectus offering of common shares, including the over-allotment option. A total of 14,375,000 common shares were sold at a price of 0.9 USD for aggregate gross proceeds of 12,937,500 USD. The over-allotment option was completed by agents from Canaccord Geniuty Corp., GMP Securities L.P., Sprott Private Wealth LP and Comark Securities. The net proceeds resulting from the offering are expected to fund facility expansion, equipment purchases, clinic construction and the launching of a cosmeceutical line. The offering is pending TSX: V final approval on regulatory filings.

Cronos enters Latin American mar- ket with plans to cultivate medicinal cannabis in Colombia
Cronos Group Inc. (NASDAQ) announced in late August its partnership with affiliate of Colombian agriculture provider Agroidea SAS to create a new entity known as NatuEra SAS. According to the 50/50 joint venture agreement, Cronos Group contributes their knowledge in the cannabis sector, while Agroidea SAS provides expertise in the Colombian agricultural sector to create a cultivation and manufacturing exports hub in Lat- in America. NatuEra will be located in a custom-built facility of 207 acres of land in Cundinamarca, a few kilometers away from Bogotá.

Aurora Cannabis Inc. enters a definitive acquisition agreement with ICC labs
Aurora Cannabis announced September 10th it entered a definitive agreement to acquire all issued and outstanding common shares of ICC at 1.95 USD per share, payable in common shares of Aurora with an aggregate purchase of 290 mill. USD. The acquisition will establish Aurora as an industry leader in South America, since ICC has 70% market share in Uruguay and licenses in Colombia, according to company’s statements. Besides offering two operational green- house facilities of about 90,000 sq. ft., ICC labs expects to be the first South American GMP Compliant Science Lab.

Valens GroWorks Corp. signs letter of intent to acquire Colombian producer Eticann SAS
Marking Valen’s first international sup- ply and extraction agreement, the letter of intent covers: purchase of cannabis materials from Eticann, exclusive right to provide extraction services for Eticann, including extraction expertise, and the option to purchase up to 50% of Eticann’s issues and outstanding shares. Eticann SAS, fully licensed in cultivation and extraction, holds over 150 hectares of cultivation land and an additional 10,000 hectares secured for future expansion.

CDN MSOLAR Corp. announces proposed acquisition of Blueberries Cannabis Corp, along with Colombian subsidiary Blueberries SAS CND MSOLAR Corp. entered a binding letter agreement with Blueberries Cannabis Corp, a transaction that will result in a reverse take-over of CDNM by cur- rent stakeholders of Blueberries. Holders of Blueberries Shares will receive one CDNM common share per each Bluberries share, but Blueberries is still to issue 63,000,000 shares before the completion of the Offering. Blueberries SAS, the Colombian Blueberries subsidiary, is currently fully licensed to cultivate, fabricate and export CBD-based products in a 33 ha. land near Bogotá to expand in the following years.

Pure Global Cannabis Inc. completes 10 mill. USD financing to ac- quire Colombian licensed cannabis producer

Canadian vertically integrated company Pure Global Cannabis Inc. announced they raised 10 mill. USD with a syndicate of investment dealers led by Eventus Capital Corp. and PI Financial Corp., via a brokered private placement offering of convertible debenture units. The net proceeds of the offering are intended to fund the acquisition of a 60% interest in Sativa Nativa SAS, a Colombian subsidiary of Avicanna Inc. The transaction is awaiting due diligence procedures and regulatory approvals, including TSX: V approval, in order to be completed.

Horizon ETFs completes quarter- ly rebalance of marijuana-focused ETFs to include Khiron Lifesciences Corp.

Canadian firm Horizons ETFs Management Inc. completed its quarterly rebalance of the constituent holdings of the Horizons Marijuana Life Sciences Index ETF and the Horizons Emerging Marijuana Growers Index EFT. The morning of September 26th, the company announced it included Khiron Lifesciences Corp. in their Horizons Emerging Marijuana Growers Index EFT, which only invests in small market-capitalization companies listed inside or out of North America.

Cultivation

BMP Colombia receives license to cultivate, process and export CBD products
After receiving 3 mill. USD of capital injection from Redfund Capital last month, Biominerales Pharma Colombia was granted licenses to cultivate, process and export non-psychoactive CBD products. BMP expects to receive approval for over 25 different cannabis genetics in the following weeks which, along with the continuous support stated by Red- fund Capital, will “help the company be- come the #1 cannabis company in South America”, said CEO Meris Kott. The company currently owns 18.6 ha of outdoor field to cultivate organic cannabis in Corinto and a farm to produce hemp in Tuluá, projected to yield 1.2-1.4 million pounds of biomass per year.