AgraFlora Organics International Inc signed a letter of intent (LOI) with International Cannabis Corp (ICC) for the strategic sale of its Colombian pharmacy operation Farma Swiss S.A.S., according to a press release by AgraFlora. ICC has a subsidiary in Malta.
ICC added that it actively investigating complementary pharmacy related assets within Colombia that may serve as synergistic accompaniments to its acquisition of Farma Swiss.
Under the LOI, International Cannabis will issue AgraFlora a number of common shares in the capital of ICC that equals to $250,000, based upon the five-day variable weighted average price of ICC’s common shares for the five trading sessions prior to the announcement of an agreement.
“This strategic transaction further crystalises our alliance with ICC with regards our collaborative pursuit of the burgeoning global cannabis industry,” said Brandon Boddy, Chairman and Chief Executive Officer of AgraFlora Organics International.
“Monetising our flagship pharmacy operation through a trusted ally permits us to streamline our international cannabis operations while focusing on the continued retrofit of our world-class greenhouse complex in Delta, BC. We are excited to be increasing our shareholdings in ICC as they continue to execute upon their international business mandate and embark upon realising material cash flows,” he added.
“By integrating Farma Swiss’ intuitive pharmacy platform with our 13-hectare cannabis centre of excellence and preeminent catalogue of native Colombian cannabis genetics, ICC will continue to solidify its leadership position within Colombia’s highly competitive medical cannabis marketplace, while streamlining patients access to our unique formulations,” said David Shpilt, Chief Executive Officer, International Cannabis Corp.
The agreement provides International Cannabis with a Latin American brick-and-mortar presence, as well as an existing commercial agreement, further augmenting its tetrahydrocannabinol (THC) and cannabidiol (CBD) cultivation capabilities and logistical infrastructure.
ICC’s addition of a premier downstream Colombian asset conceives a compliant and secure platform for the distribution of medical cannabis and cannabinoid-derived products within Colombia.
Farma Swiss is part of Pure Grow Medicinals S.A.S. It operates a licensed pharmacy strategically situated within a high traffic, commercial neighbourhood of Medellin, Colombia.