Medcolcanna to grow distribution of medical cannabis through acquisitions and JVs – CEO
It is also interested in companies with expertise in medical-cannabis extraction techniques, the executive added. Medcolcanna is in advanced talks with more than one target, the CEO said, without offering more details. On 23 May, Medcolcanna launched an initial public offering (IPO) on the Toronto Venture Exchange with a valuation of CAD 22m (USD 16.3m), said the CEO. That same day, it announced it agreed to acquire Dutch cannabinoid (CBD) formulation developer Innovative CBD Products for USD 900,000 in shares, according to a press release. The transaction is expected to close in June. De la Vega founded Medcolcanna in 2016, following the legalization of medical cannabis use in Colombia the previous year, said the CEO. The South American country has ideal growing conditions because of its stable weather and long daylight hours year-round, said de la Vega. Medcolcanna received its export license last June and expects to begin commercial cannabis production by 4Q19, the CEO said. It has signed agreements to sell medical cannabis to pharmaceutical companies in Germany and Switzerland, he added. The company expects to expand its production capacity to at least 7.5 hectares by year-end, said de la Vega. This should yield 70 tons-75 tons of dry cannabis flower annually at a production cost of USD 0.05 per gram, he added. To supplement its production, Medcolcanna develops and tries new cannabis breeds and has signed several agreements to supply genetics services, or developing new cannabis strains, to third-parties, said de la Vega. The agreements are pending regulatory approval of the new breeds by Colombian authorities, he noted. The company is developing cannabis-based pharmaceuticals to treat chronic illnesses like Crohn’s Disease, arthritis and insomnia, said the CEO. It also has a cultivation and extraction arm, which works to improve breed purity and strength, the executive added. While there is still no commercial medical cannabis production in Colombia, there are three other public medical cannabis companies operating in the country: Toronto-based Khiron Life Sciences [TSXV:KHRN], Pharmacielo [TSXV:PCLO] and Blueberries Medical Corp [CSE:BBM], said de la Vega. This news service reported on 16 May that Khiron is looking for acquisition targets in Brazil and Mexico to reach one million patients within five years. Toronto-based GMP Securities and Vancouver-based Canaccord advised Medcolcanna on its capital raise, said the CEO. by Dominic Pasteiner in Mexico City / MergerMarket
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Medcolcanna [TSXV:MCCN], a Bogotá-based medical cannabis company, is in advanced talks to boost its global distribution network through acquisitions, joint ventures, and partnerships, CEO Felipe de la Vega said.
The company, which expects to sell 8-10 tons of cannabis oil next year, is targeting distribution companies in the US and Europe that can help bolster its brand awareness and continue growing its production, said de la Vega.