VANCOUVER, British Columbia, June 13, 2019 (GLOBE NEWSWIRE) -- ICC International Cannabis Corp. (CSE:WRLD.U)(8K51.F)(WLDCF) (the “Company” or "ICC" or “International Cannabis”) is pleased to announce it has entered into a definitive agreement to acquire 100 per cent of Grupo Pharma Colombiano Inc. (“Grupo Pharma”), further augmenting its LATAM pharmacy distribution network.
Grupo Pharma controls 75 per cent of an existing pharmacy operation located in the “El Poblado” area of Medellin, Colombia (“Pharmacy Grupo”), which is a centrally located, affluent community that has a population of approximately 128,000 consumers within a nine square mile radius. The area is also a top tourist destination and benefits from the influx of the approximate 550,000 annual visitors that Medellin receives.
The acquisition of Grupo Pharma represents International Cannabis’ second flagship Colombian brick and mortar pharmacy operation, with eight additional locations expected to secured and retrofitted by the end of fiscal 2019.
Pharmacy Grupo is equipped with an experienced operations team, focused on deploying a patient-centric distribution strategy, coupled with optimized supply chain channels. International Cannabis plans to drive prescription and brand loyalty to its flagship Colombian pharmacies, while addressing priority medical conditions with in LATAM theatre by combining:
- Patented delivery systems and technologies;
- Extensive consumer product goods (“CPG”) and branded product market entrance experience;
- Global scientific expertise; and,
- Comprehensive doctor detailing and educational campaigns
Pharmacy Grupo has established a strong presence and client base servicing the local populous and is now preparing to execute on a comprehensive expansion campaign, targeting high density, consumer friendly zones across the Antioquia region of Northwest Colombia. The Antioquian region is home to approximately 6.6 million inhabitants and is widely revered for its robust healthcare infrastructure, universities and diverse industries.
Grupo Pharma’s flagship pharmacy is equipped with retail, wholesale and on-line distribution channels and boasts the following industry accolades:
- Top 10 individual sales location in all of Antioquia;
- Top 10 vendor of Abbott y LaFrancol & CoopiDrogas Pharmaceuticals;
- Over 2000 unique SKU’s on offer;
- Referral network of over 400 certified medical professionals;
- 30 minute in-house pharmaceutical delivery and medical visit outreach infrastructure; and,
- Relationships with major pharmaceutical brands
By leveraging proprietary data science techniques and advanced regression analytics derived from demographic and consumer information repositories, Grupo Pharma has developed a comprehensive expansion stratagem with the objective of capturing increased market penetration across the Antioquia region.
Pending appropriate licensing and regulatory approval, Grupo Pharma’s strategic growth plans include introducing premium cannabis flower and cannabidiol (“CBD”) related products derived from International Cannabis’ library of native Colombian cannabis genetics.
ICC’s Colombian genetics portfolio consists of 20 unique strains that include both prominent tetrahydrocannabinol (“THC”) and CBD varietals, such as:
- Medellin Gold; and,
As both the World Health Organization and many countries around the world shift their stance in favour of medical use of CBD-dominant cannabis oils and CBD-derived health and wellness products; the demand for high-yield CBD strains is expected to increase geometrically.
David Shpilt, Chief Executive Office of International Cannabis stated: “The astute acquisition of Grupo Pharma furthers our mandate in bolstering distribution touch-points, as well as solidifying early mover advantages in burgeoning cannabis locales, such as Colombia. According to a report by New Frontier Data, the total addressable LATAM cannabis market represents approximately US$9.8 billion and accounts for 600 million people; further validating Colombian’s high-profile market opportunity.
Pharmacy Grupo further bolsters ICC’s downstream LATAM capabilities by securing a turnkey solution to establish a baseline presence within Colombian’s burgeoning medical cannabis and health and wellness verticals.
In conjunction with our data driven LATAM expansion plan, the Company will undertake material efforts to strengthen our Colombian doctor out-reach programs, as well as institute high profile corporate and university drug plan out-reach initiatives. ICC will continue to leverage its advanced global downstream capabilities, including its European distribution footprint of 80,000 pharmacies and retail end-points to market premium cannabis under the Company’s diverse brands and banners.”
On closing, ICC shall issue to the shareholders of Grupo Pharma 15 million common shares in the capital of the Company. When issued, 50 per cent of the closing payment shares will be subject to a hold period of six months from the date of issuance, and the remaining 50 per cent of the closing payment shares will be subject to a hold period of 12 months from the date of the issuance. The Company will also pay C$230,000.00.
A finder’s fee is payable on this transaction.
ABOUT INTERNATIONAL CANNABIS
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.
ON BEHALF OF THE ICC INTERNATIONAL CANNABIS CORP BOARD OF DIRECTORS
Chief Executive Officer
+001 (604) 687-2038
Investor Relations Contact:
+001 (416) 597-5769
For ICC French inquiries:
Remy Scalabrini, Maricom Inc.
T: +001 (888) 585-MARI
Learn more about ICC by visiting our website at: https://intlcannabiscorp.com/
Stay up to date with everything happening at ICC by following or liking us on:
Facebook - https://www.facebook.com/ICCWRLD/
Twitter - https://twitter.com/ICC_WRLD
LinkedIn - https://www.linkedin.com/company/icc-wrld/
THE CSE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ACCURACY OR ADEQUACY OF THIS RELEASE.
Notice Regarding Forward Looking Information:
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: political changes in Canada and internationally, future legislative and regulatory developments involving cannabis in Canada and internationally, the Company’s ability to secure distribution channels in international jurisdictions, competition and other risks affecting the Company in particular and the cannabis industry generally.
The forward-looking information contained in this release is expressly qualified by the foregoing cautionary statements and is made as of the date of this release. Except as may be required by applicable securities laws, the Company does not undertake any obligation to publicly update or revise any forward- looking information to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.