ICC Labs Buying Global Group Kalapa for Cash, Stock and CBD 03/28/2018 09:51 AM ET
Mar 28, 2018 (Baystreet.ca via COMTEX News Network) -- Medicinal cannabinoid extracts company ICC Labs Inc. (TSX-V:ICC) is looking to enter the European market, saying Wednesday morning that it has penned a term sheet to invest in Global Group Kalapa S.L., a Barcelona, Spain-based medical cannabis company with a business model covering the entire value chain from research to distribution.
Per the deal, ICC Labs can acquire an initial 25% of Kalapa in exchange for cash, stock and cannabidiol (CBD) product. The agreement includes an option for ICC to buy the remaining 75% of Kalapa by the end of this year.
ICC management sees the acquisition dovetailing with its international growth initiatives. While headquartered in Vancouver, the company is a licensed producer and distributor of cannabis products in Uruguay (the only country in the world currently with full adult-use of cannabis) and licensed producer of medical cannabis in Colombia.
Closing of the initial 25% acquisition is expected in April.
Kalapa is diversified, including ownership of subsidiary KSK Labs S.L., whose portfolio presently includes CBD-based sublingual oils, creams and teas sold under the MyCBD and CBDinol brands through a partnership with United Natural Green Labs.
The products are legally distributed throughout Western Europe, including Spain, France, Italy, Germany and the United Kingdom, with future intentions of launching new products through existing channels while expanding into new markets, such as Portugal, Poland and Greece.
Kalapa also owns alternative medical consultancy Kalapa Clinic S.L. Later in 2018, this Kalapa unit is expected to launch the The International Medical Cannabis Institute, which will offer training and webinar certified courses on medical cannabis conducted by professionals.
Kalapa is further a JV partner in Netherlands-based cannabinoid-based medicine developer CBM Labs and CanPharma GmbH, a company working to import cannabis flowers and other products into the German market.
After printing a 52-week high at $2.00 on January 25, shares of ICC have fallen sharply, including closing down 5.3% on Tuesday at $1.25. Investors will likely be watching Wednesday morning to see if the acquisition news breathes some life back into the stock.