TORONTO, Aug. 21, 2018 /PRNewswire/ - Further to the release dated August 16, 2018 (the "Press Release") concerning the acquisition of a sixty percent (60%) interest in Santa Marta Golden Hemp S.A.S. ("SMGH"), Avicanna Inc. ("Avicanna" or the "Company") is pleased to set out the details surrounding the acquisition of the SMGH shares and relationship with El Grupo Daabon ("Daabon").
Avicanna has been working with the key stakeholders in Daabon since December 2017 to define the terms of the parties' relationship in managing SMGH's cannabis licenses. Avicanna and SMGH came to a non-binding agreement in January 2018 for the acquisition by Avicanna of sixty percent (60%) interest in SMGH and the parties began working with each other for the financing and operation of SMGH since that time.
The parties executed a binding agreement on March 5, 2018 that was conditional upon several items, including the financing of the first phase of build out and registration of land with the Colombian government.
The last approval relating to the binding agreement was granted on August 16, 2018, which allowed Avicanna to issue the Press Release.
SMGH constitutes a joint venture arrangement between Avicanna and Daabon in which Avicanna is required to provide financial and non -financial contributions, most of which Avicanna commenced in early 2018, including:
- Finance phase 1 build out of the SMGH property and facilities;
- Preparing the property for everything required for operations, quotas and construction;
- Contributing sufficient capital for construction and operating personnel;
- Provision of oversight and management of SMGH;
- Supplying of extraction and analytical technologies and related intellectual property to SMGH;
- Supplying of genetics and biological intellectual property to SMGH; and
- Shares equivalent to 11.2% of the total issued and outstanding common shares of Avicanna as at April 30, 2018.
About Santa Marta Golden Hemp S.A.S.
SMGH is a federally licensed and vertically integrated cannabis company based in Santa Marta, Colombia. Utilizing ideal environmental conditions as well as local organic cultivation expertise, SMGH aims to be one of the largest and most sustainable cannabis cultivation projects in the world. As an Avicanna subsidiary, SMGH leverages the intellectual property and advanced scientific know-how of Avicanna's team to execute its business model which includes cultivation, extraction, manufacturing, analytical testing and commercialization of its final products. With the support of global organic leaders, Grupo Daabon, SMGH is dedicated to environmental preservation, SMGH will cultivate 100% sun grown certified organic cannabis. Implementing Good Agricultural Practices (G.A.P) and Good manufacturing Practices (G.M.P)
About El Grupo Daabon
The Grupo Daabon is a pioneer and leader in the production of sustainable and organic ingredients in South America with headquarters located in Santa Marta, Colombia. The family-owned company was founded in 1914 and has grown to become the largest organic agriculture company in South America, employing well over 3000 with operations across 4 continents and sales in over 20 countries. Its operations include cultivation, the largest palm oil refinery in the Americas, production of glycerin and bio-fuels, construction, port management and duty-free zones. Daabon is also a global leader in production of organic palm oil, bananas, coffee, and avocado with over 40 organic and sustainability certificates world-wide including rain forest alliance, the first palm oil company to be certified RSPO and has been awarded as most sustainable producer of palm oil in the world for the last several years by SPOTT.
Avicanna Inc. is a biotechnology company focused on innovative product development and advanced clinical research in the medical cannabis industry and is currently headquartered in JLABS @ Toronto (Canada). Capitalizing on the progressive development of its proprietary brands Pura Elements™ and Pura Earth™, Avicanna is focused on building an international distribution network through its vertically-integrated business model and strategic licensing models. Utilizing the experience of its senior scientists, executive board, and the support of its clinical and academic partners in the University of Toronto and the University Health Network, Avicanna strives to be at the forefront of advancements in the global medical cannabis industry. Avicanna is focused on providing cannabinoid-based therapies that are both clinically supported and medically-approved.
Forward Looking Statements
This news release contains certain "forward-looking information" within the meaning of applicable Canadian securities law. Forward-looking information is frequently characterized by words such as "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or information that certain events or conditions "may" or "will" occur. This information is only a prediction. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking information throughout this news release. Forward-looking information includes, but is not limited to: (i) the ability to consummate transactions which are currently in discussions, (ii) the continuation of current climate and weather conditions in Colombia which are optimal for cannabis cultivation, (iii) requirements to obtain additional financing, (iv) timeliness of government approvals for granting of permits and licenses, including licenses to cultivate cannabis, (v) completion of local growing facilities, where applicable, (vi) actual operating performance of the facilities, (vii) regulatory or political change in Colombia, Latin America, or Canada, (viii) competition and other risks affecting Avicanna and Sativa Nativa S.A.S., in particular, and the medical cannabis industry generally. Forward-looking information is based on the opinions and estimates of management at the date the information is made, and is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Avicanna is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law.
SOURCE Avicanna Inc.