ORIGINAL: Next Green Wave Signs MOU with Organic Medical Growth to Enter the Colombian Medical Cannabis Market
Next Green Wave to take a strategic investment in Organic Medical Growth as the company moves towards a proposed IPO in 2019
2019-02-14 08:31 ET - News Release
Vancouver, British Columbia--(Newsfile Corp. - February 14, 2019) - Next Green Wave Holdings Inc. (CSE: NGW) (OTCQB: NXGWF) ("Next Green Wave" or the "Company"), is pleased to announce that it has entered into a memorandum of understanding "MOU" to take a strategic investment in Organic Medical Growth OMG3 INC. ("OMG"), a Canadian based company operating a wholly owned Colombian subsidiary called Proymed S.A.S "Proymed". Proymed is a medical cannabis company focused on producing and commercializing non-psychoactive (CBD) products derived from medicinal and industrial cannabis. Proymed is finalizing its transformation and psychoactive (THC) licenses in Colombia as well as finalizing international distribution agreements.
Subject to completion of a definitive agreement and applicable regulatory approvals including the approval of the Canadian Securities Exchange, Next Green Wave will have access to the Colombia cannabis market which has an estimated potential to supply 6 million patients.
As well as taking this strategic investment, Next Green Wave will collaborate and provide commercial strategic support to OMG, through Proymed, including the following:
- Adoption of nursery, cultivation and manufacturing techniques that will enable OMG to produce high quality cannabinoid oil through large scale production and in compliance with GMP standards;
- Planning and design of necessary infrastructure for its outdoor and indoor facilities; and
- Licensing of Next Green Waves medicinal consumer product goods and brands across OMG's entire distribution network subject to countrywide regulation approval.
Positioned to be the Lowest-Cost High-Margin Colombian Producer
OMG is actively pursuing an IPO and focusing , through Proymed, on becoming a significant producer and supplier of medical cannabis products and services in Colombia alongside companies such as PharmaCielo and Khiron Life Sciences Corp. OMG is positioning itself to become one of the lowest cost, high margin businesses operating in Colombia model while delivering premium quality cannabis products to their consumers.
OMG has a defined strategic roadmap with a highly experienced management team. Key highlights from OMG's unique offering include the following:
- OMG, through Proymed, has an exclusive offtake agreement to purchase the entire cannabis production of the Asomiravalle Norte Association. This association of 28 producers is located in the state of Valle Del Cauca. The association's activities span across 100 hectares of land with the option to expand the production to 1000 hectares over the next 10 years.
- OMG has an exclusive distribution agreement with SALUTTI S.A.S. who owns 100% of ORTIX S.A.S.
- ORTIX S.A.S. gives OMG exclusive distribution of cannabis products to its network of over 7000 pharmacies in Colombia.
- OMG is developing its distribution channels to export cannabis products in other established markets including Germany.
"We are excited to become a strategic partner of OMG as they position themselves to be a leader in the production and distribution of medical cannabis in Colombia," stated Leigh Hughes, CEO of Next Green Wave. "With the likes of PharmaCielo Ltd. and Khiron Life Sciences Corp gaining recent global exposure in the cannabis world, it is clear that Colombia has brilliant potential for a low-cost, high-margin business model. Our partnership will benefit both parties by accelerating OMG to become a leader in the Colombian market whilst giving Next Green Wave future licensing opportunities and distribution beyond the California market."
"We are very pleased to further position ourselves in the Colombian cannabis industry. The country has some of the best cultivation environments in the world and with the current legal framework, Colombia could soon become the world's leader in both production and export of medicinal cannabis. OMG's strategic alliance with Next Green Wave will act as a springboard to kickstart our operations both in Colombia and internationally," said Jorge Diaz, CEO of OMG. "The expertise, know-how, and product lines Next Green Wave have developed will allow OMG to expedite its go to market strategy and we look forward to fully use the synergy of our teams as we plan to go public."