Avicanna acquires majority interest in Colombian cannabis cultivator
21 Aug 2018 --- Avicanna Inc. has acquired a sixty percent controlling interest in Santa Marta Golden Hemp S.A.S. (SMGH) in a move hoped to advance cannabinoid research and NPD, as well as global reach for the brand.
The other substantial holder in SMGH is controlled by El Grupo Daabon (Daabon), a global industrial scale organic agricultural company based in Colombia. Daabon has also committed to lead Avicanna's IPO financing and subscribe for up to 20 percent of the offering.
Daabon and Avicanna will be combining resources and expertise including Avicanna's strong standing in research and biotechnological developments in the cannabinoid sector and Daabon's standing within the agricultural industry of industrial-scale organic cultivation, processing and distribution. Daabon has agreed to dedicate all of its cannabis activities through SMGH, allowing Avicanna to capitalize on Daabon's well established global roots in the agricultural industry.
Some key highlights of the transaction:
- The partnership will combine a Canadian biotechnological company focusing on advancements in cannabinoid research and product development with a multi-billion dollar global organic agricultural enterprise.
- SMGH is situated on, and owns, a sixteen-hectare parcel of land on the Caribbean coast near Santa Marta.
- Access to sustainable, and environmentally responsible agricultural business with over 15,000 hectares certified for organic cultivation which will allow SMGH to scale operations significantly.
- Enhanced infrastructure and access to duty-free zones controlled by Daabon, hopefully paving the way for the development of a global distribution network. Distribution and global footprints of both organizations, including Avicanna's offices in four countries and Daabon's offices in six countries with sales in over twenty countries worldwide.
- Anticipated API and final product sales, inclusive of Avicanna's skin care and medical cannabis products, which utilizes the research and product development carried out in MaRS and through research partnerships with the University of Toronto and University Health Network.
Daabon has agreed to lead Avicanna's IPO financing round by taking up to 20 percent of the brokered private placement. Proceeds from the IPO financing will be used for Avicanna's R&D projects in Canada, clinical projects around the world, funding of infrastructure in its agricultural projects in Colombia and the growth of commercialization and distribution channels in Latin America and Europe.
