Last Updated on Tuesday, 13 August, 2019 at 11:00 am by Christian Keszthelyi
Cannabis firm AgraFlora Organics International Inc signed an agreement with peer International Cannabis Corp (ICC), under which AgraFlora will transfer its portfolio of exotic, native Colombian cannabis genetics to ICC for international marketing and distribution purposes, according to a press statement. As the World Health Organization, as well as many countries around the world, shift their stance in favour of medical use of cannabis products, demand for such is expected to quickly rise in the upcoming years.
Under the terms of the agreement, AgraFlora will retain the rights to the genetics library for its own uses within North America, granting International Cannabis with exclusive rights elsewhere internationally. In consideration for the transfer of the genetics library, ICC will issue one million common shares to AgraFlora. The valuation of the shares will be based upon the five-day VWAP of ICC’s common shares for the five trading sessions prior to the announcement of the agreement, according to the press statement.
In May 2018, AgraFlora formed a subsidiary: Pure Grow Medicinals S.A.S. Pure Grow, to pursue cannabis cultivation and genetics opportunities in Colombia. Pure Grow is transferring to International Cannabis a library consisting of 20 unique strains that include both prominent tetrahydrocannabinol (THC) and cannabidiol (CBD) varietals, including strains such as Caucana, Purpura, Medellin Gold and Maroc, the press statement says.
The companies say that their genetics portfolio consists of “rare, native cannabis strains from the regions of Valle del Cauca, Cauca, Magdalena and Antioquia in Colombia,” the press statement records.
“This partnership further equips International Cannabis with the ability to provide highly coveted Colombian cannabis flower to its global distribution network of approximately 39,000 pharmacies and retail outlets,” said Eugene Beukman, Chief Executive Officer and a Director of International Cannabis. “The transfer of these native Colombian strains will also allow for the continued differentiation of the International Cannabis brand in an increasingly generic and homogenized market,” he added.
“Pure Grow has assembled a unique genetic library of cannabis native to Colombia which we believe is poised to become a valuable asset for our company,” said Derek Ivany, President & CEO, AgraFlora Organics International Inc. “With the aim of maximizing the value of our genetics portfolio, we have confidence in our new partnership with ICC as they have built an extensive infrastructure across the value chain in the international cannabis marketplace. Their vast international presence consists of distribution networks and various licenses in multiple jurisdictions that will assist in introducing our genetics library to the marketplace,” he added.