- The Acquisition of NettaGrowth International Inc. provides
Khiron with up to an additional 120 tonnes of licenced production
capacity
- Diversifies Khiron´s licence composition to include medical
use and flower cultivation distribution capabilities
- Secures a scientific and investigation agreement with
Institute Pasteur of Montevideo, a
respected biotechnology researcher and developer in Uruguay
- Mr. Joseph Mimran,
experienced brand builder and entrepreneur, joins the board of
Khiron Colombia S.A.S
TORONTO, June 19, 2019 /CNW/ - Khiron Life Sciences Corp.
("Khiron" or the "Company") (TSXV: KHRN),
(OTCQB: KHRNF), (Frankfurt:
A2JMZC), a cannabis company with core operations in Latin
America, announces that it has completed the acquisition of
NettaGrowth International Inc. ("NettaGrowth"),
previously announced on January 25,
2019 and April 9, 2019, and
its wholly-owned subsidiary Dormul S.A. ("Dormul"), a
Uruguayan company that has obtained the first licence to produce
and export medical cannabis with THC for commercialization in
Uruguay. As consideration for the
acquisition of NettaGrowth, Khiron has issued 8,498,821 common
shares to the shareholders of NettaGrowth at a deemed price of
$1.61 per common share.
Alvaro Torres, Khiron CEO and
Director, comments " Closing of the acquisition of Nettagrowth
represents an important milestone for Khiron. With this deal we
expand our geographic footprint into a market we know well, and
secure access to potential patients in Uruguay and in Southern Brazil.
Uruguay was the first country
to establish legislation for cannabis and Dormul has secured a
medical cannabis cultivation and commercialization licence for the
jurisdiction, with a cultivation capacity of up to 120 tonnes and
170,000 plants. In addition, Dormul has an application pending for
an extraction licence. Upon receipt of its extraction licence,
Dormul is expected to be among the first companies in Uruguay to be approved for medical
cannabis-based CBD oils for both domestic and export purposes. With
a strong commitment to research and development, Dormul has
established a strategic partnership with the Institut Pasteur
de Montevideo, a prestigious
foundation formed between the Uruguayan and French governments
focused on the research and development of cannabis product. The
foundation was recently recognized by the Uruguayan Ministry of
Industry for the important social and economic impact its
operations are anticipated to have for the country.
In connection with the acquisition, Mr. Michael Beck, experienced capital markets
professional and entrepreneur, has joined the board of Khiron, and
Mr. Joseph Mimran, experienced brand
builder and entrepreneur, has joined the board of Khiron Columbia
S.A.S.
"The addition of Mike Beck to our
board, and Joe Mimran to the board
of Khiron Colombia further add to our highly experienced and proven
leadership capabilities as we solidify our position as a cannabis
leader in Latin America." adds
Mr.Torres.
A finder's fee of 420,000 common shares has been paid to
Oisin Fanning.
The acquisition remains subject to final TSX Venture Exchange
Inc. ("TSXV") approval.
About NettaGrowth and Dormul
NettaGrowth, through Dormul, is a Latin America export focused cannabis company
based in Uruguay, and is well
positioned to serve Brazil and the
growing Latin American market. They will employ the latest growing,
extracting and processing technologies to produce high quality
medical cannabis products for the Latin American market.
About Khiron Life Sciences Corp.
Khiron Life Sciences Corp. is positioned to be the dominant
integrated cannabis company in Latin
America. Khiron has core operations in Latin America and is fully licensed in the
country for the cultivation, production, domestic distribution, and
international export of both THC (tetrahydrocannabinol) and CBD
(cannabidiol) medical cannabis. In May
2018, Khiron listed on the TSX Venture Exchange, becoming
the first Colombian based medical cannabis company to trade on any
exchange globally.
With a focused regional strategy and patient oriented approach,
the Company combines global scientific expertise, agricultural
advantages, branded product market entrance experience and
education to drive prescription and brand loyalty to address
priority medical conditions such as chronic pain, epilepsy,
depression and anxiety in the Latin American market of over 620
million people. Khiron is led by Co-founder and Chief Executive
Officer, Alvaro Torres, together
with an experienced executive team, and a knowledgeable Board of
Directors that includes former President of Mexico, Vicente
Fox.
Further information on Khiron Life Sciences can be found
at www.khiron.ca.
To be added to the distribution list, please email:
khiron@kcsa.com with "Khiron" in the subject line.
Cautionary Notes
Forward-Looking Statements
This press release may contain certain "forward-looking
information" and "forward-looking statements" within the meaning of
applicable securities legislation. All information contained herein
that is not historical in nature may constitute forward-looking
information. Forward-looking statements may be identified by
statements containing the words "believes", "anticipates", "plans",
"intends", "will", "should", "expects", "continue", "estimate",
"forecasts" and other similar expressions. Forward-looking
statements herein include, but are not limited to, statements
regarding the anticipated benefits of the acquisition, Dormul's
cultivation capacity, receipt by Dormul of an extraction licence,
and receipt of all required regulatory approvals, including final
approval of the TSXV, among others. Readers are cautioned to not
place undue reliance on forward-looking information. Actual results
and developments may differ materially from those contemplated by
these statements. Khiron undertakes no obligation to comment
analyses, expectations or statements made by third-parties in
respect of Khiron, its securities, or financial or operating
results (as applicable). Although Khiron believes that the
expectations reflected in forward-looking statements in this press
release are reasonable, such forward-looking statement has been
based on expectations, factors and assumptions concerning future
events which may prove to be inaccurate and are subject to numerous
risks and uncertainties, certain of which are beyond Khiron's
control, including the risk factors discussed in Khiron's Annual
Information Form which is available on Khiron's SEDAR profile at
www.sedar.com. The forward-looking information contained in this
press release is expressly qualified by this cautionary statement
and are made as of the date hereof. Khiron disclaims any intention
and has no obligation or responsibility, except as required by law,
to update or revise any forward-looking information, whether as a
result of new information, future events or otherwise.
United States Disclaimer
This news release does not constitute an offer to sell or a
solicitation of an offer to buy any of the securities
in the United States. The securities have not been and
will not be registered under the United States Securities Act of
1933, as amended (the "U.S. Securities Act") or any state
securities laws and may not be offered or sold within the
United States or to U.S. Persons
(as such term is defined in Regulation S under the U.S. Securities
Act) unless registered under the U.S. Securities Act and applicable
state securities laws or an exemption from such registration is
available
Neither the TSXV nor its Regulation Services Provider (as
that term is defined in the policies of the TSXV) accepts
responsibility for the adequacy or accuracy of this press
release.
SOURCE Khiron Life Sciences Corp.