VANCOUVER, May 28, 2019 /CNW/ - AgraFlora Organics International Inc. ("AgraFlora" or the "Company") (CSE: AGRA) (Frankfurt: PU31) (OTCPK: PUFXF), a growth oriented and diversified international cannabis company, is pleased to announce that it has entered into a binding Letter of Intent (the "Agreement") with ICC International Cannabis Corp. ("ICC") (CSE: WRLD.U)(FWB: 8K51)(OTC: WLDCF), for the strategic sale of its Colombian pharmacy operation, Farma Swiss S.A.S. ("Farma Swiss").
"This strategic transaction further crystalizes 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. "Monetizing 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 realizing material cash flows."
"The proposed acquisition of Farma Swiss represents yet another material development within the LATAM theatre for ICC; affording us the opportunity to further leverage our first mover advantage within the Colombian medical cannabis market by directly servicing more than five million potential patients within the country," said David Shpilt, Chief Executive Officer, International Cannabis Corp. "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."
Farma Swiss is part of Pure Grow Medicinals S.A.S., AgraFlora's wholly owned Colombian subsidiary formed to pursue international opportunities in the cannabis industry. It operates a licensed pharmacy strategically situated within a high traffic, commercial neighbourhood of Medellin, Colombia. Farma Swiss' fully licenced brick and mortar pharmacy operation is equipped with the following ancillary, value-added services:
- Inbound prescription call centre, augmented by advanced supply chain and CRM software suites;
- Domestic delivery service, providing local clientele with a vast array of medical pharmaceutical and over-the-counter products;
- On-site health related services and consulting;
- Proposed cannabinoid education and doctor detailing staging ground; and,
- Virtual channel capabilities.
The Agreement provides International Cannabis with a coveted LATAM brick-and-mortar presence, as well as an existing high-profile commercial agreement, further augmenting the its THC/CBD cultivation capabilities and robust logistical infrastructure. ICC's addition of a premier downstream Colombian asset thus conceives a compliant and secure platform for the distribution of medical cannabis and cannabinoid-derived products within Colombia.
It is anticipated that ICC will deploy a custom-made pharmacy compound strategy, originating with its inaugural Farma Swiss Colombian location.
ICC's acquisition of Farma Swiss augments recently concluded commercial arrangements between AgraFlora and ICC, completing the companies symbiotic vertically integrated global cannabis mandates including:
- Five-year term off-take agreement whereby ICC may purchase up to 100,000,000 grams of premium dried cannabis flower from AgraFlora's Delta Greenhouse Complex; and,
- AgraFlora's assignment of its library of 20 unique Colombian cannabis genetics to International Cannabis, including prominent THC and CBD varietals, such as:
- Medellin Gold; and
International Cannabis also announces that it is actively investigating complementary pharmacy related assets within Colombia that may serve as synergistic accompaniments to its acquisition of Farma Swiss. Further details will be provided in due course as due diligence progresses.
As per the terms of the Agreement International Cannabis will issue AgraFlora such 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.
About International Cannabis Corp.
ICC International Cannabis, through its subsidiaries, has operating assets and is developing a world-class platform for cultivation, extraction, formulation and distribution across the globe in the United Kingdom, Denmark, Poland, Switzerland, Germany, Macedonia, Bulgaria, Serbia, Croatia, Greece, Italy, Portugal, Malta, Colombia, Argentina, Australia, South Africa and Lesotho. Learn more about ICC by visiting our website at: https://intlcannabiscorp.com.
About AgraFlora Organics International Inc.
AgraFlora Organics International Inc. is a growth oriented and diversified company focused on the international cannabis industry. It owns an indoor cultivation operation in London, ON and is a joint venture partner in Propagation Service Canada and its large-scale 2,200,000 sq. ft. greenhouse complex in Delta, BC. The Company has a successful record of creating shareholder value and is actively pursuing other opportunities within the cannabis industry. For more information please visit: www.agraflora.com.
ON BEHALF OF THE BOARDS OF DIRECTORS
Chairman & CEO
AgraFlora Organics International
T: (604) 682-2928
The CSE and Information Service Provider have not reviewed and does not accept responsibility for the accuracy or adequacy of this release.
Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Issuer's future plans, objectives or goals, including words to the effect that the Issuer or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties.
SOURCE AgraFlora Organics International Inc.
For further information: David Shpilt, Chief Executive Officer, ICC International Cannabis Corp., T: (604) 687-2038; AgraFlora Organics International Inc., Tim McNulty, E: [email protected], T: (800) 783-6056; For French inquiries: Remy Scalabrini, Maricom Inc., E: [email protected], T: (888) 585-MARI; ICC International Cannabis Corp., Investor Relations Contact: E: [email protected], T: (416) 597-5769