- The Acquisition of NettaGrowth International Inc. provides Khiron with up to an additional 120 tonnes of licenced production capacity
- Diversifies Khiron´s licence composition to include medical use and flower cultivation distribution capabilities
- Secures a scientific and investigation agreement with Institute Pasteur of Montevideo, a respected biotechnology researcher and developer in Uruguay
- Mr. Joseph Mimran, experienced brand builder and entrepreneur, joins the board of Khiron Colombia S.A.S
TORONTO, June 19, 2019 /CNW/ - Khiron Life Sciences Corp. ("Khiron" or the "Company") (TSXV: KHRN), (OTCQB: KHRNF), (Frankfurt: A2JMZC), a cannabis company with core operations in Latin America, announces that it has completed the acquisition of NettaGrowth International Inc. ("NettaGrowth"), previously announced on January 25, 2019 and April 9, 2019, and its wholly-owned subsidiary Dormul S.A. ("Dormul"), a Uruguayan company that has obtained the first licence to produce and export medical cannabis with THC for commercialization in Uruguay. As consideration for the acquisition of NettaGrowth, Khiron has issued 8,498,821 common shares to the shareholders of NettaGrowth at a deemed price of $1.61 per common share.
Alvaro Torres, Khiron CEO and Director, comments " Closing of the acquisition of Nettagrowth represents an important milestone for Khiron. With this deal we expand our geographic footprint into a market we know well, and secure access to potential patients in Uruguay and in Southern Brazil.
Uruguay was the first country to establish legislation for cannabis and Dormul has secured a medical cannabis cultivation and commercialization licence for the jurisdiction, with a cultivation capacity of up to 120 tonnes and 170,000 plants. In addition, Dormul has an application pending for an extraction licence. Upon receipt of its extraction licence, Dormul is expected to be among the first companies in Uruguay to be approved for medical cannabis-based CBD oils for both domestic and export purposes. With a strong commitment to research and development, Dormul has established a strategic partnership with the Institut Pasteur de Montevideo, a prestigious foundation formed between the Uruguayan and French governments focused on the research and development of cannabis product. The foundation was recently recognized by the Uruguayan Ministry of Industry for the important social and economic impact its operations are anticipated to have for the country.
In connection with the acquisition, Mr. Michael Beck, experienced capital markets professional and entrepreneur, has joined the board of Khiron, and Mr. Joseph Mimran, experienced brand builder and entrepreneur, has joined the board of Khiron Columbia S.A.S.
"The addition of Mike Beck to our board, and Joe Mimran to the board of Khiron Colombia further add to our highly experienced and proven leadership capabilities as we solidify our position as a cannabis leader in Latin America." adds Mr.Torres.
A finder's fee of 420,000 common shares has been paid to Oisin Fanning.
The acquisition remains subject to final TSX Venture Exchange Inc. ("TSXV") approval.
About NettaGrowth and Dormul
NettaGrowth, through Dormul, is a Latin America export focused cannabis company based in Uruguay, and is well positioned to serve Brazil and the growing Latin American market. They will employ the latest growing, extracting and processing technologies to produce high quality medical cannabis products for the Latin American market.