As the cannabis industry continues to mature, a growing number of companies are scaling their operations through strategic acquisitions and partnerships, especially multi-state operators and those looking to expand into and grow their presence in international markets, allowing them to enlarge their footprints while lowering initial start-up and operating costs, and pooling resources in situations beneficial to all parties involved.
One company that has excelled at this is Vancouver-based ICC International Cannabis Corp. (CSE: WRLD.U, FWB: 8K51, OTC: WLDCF) which, as a result of this strategy, has established a considerable footprint on five continents, clients representing over 3,500 pharmacies in 16 countries, and licenses on three continents.
Wayland Partnership Enlarges European Footprint
On May 29, ICC announced the closure of its acquisition of a 49.9% interest in Wayland Group’s international asset and license portfolio – which has been reorganized into “Wayland International,” a subsidiary which will be jointly owned and operated by ICC and Wayland – and includes a three-year agreement to supply medical cannabis to 2,200 German pharmacies.
Wayland will enter into a three-year agreement to supply ICC with 10,000kg annually of EU-GMP compliant dried cannabis flower grown at Wayland’s EU-GMP certified Langton, Ontario licensed production facility. The aggregate of 30,000 kgs will be destined for high-value distribution channels in the European medical marketplace, with an approximate economic benefit to ICC upwards of 8 Euro per gram.
Commenting on the agreement, ICC CEO David Shpilt said, “This is a landmark acquisition for International Cannabis. Wayland has assembled an international portfolio of strategic and high-value assets across all of the cannabis value chain. Wayland’s achievements to date, to which ICC will bring capital and operational ability, is highlighted by the company’s selection in the German tender process for domestic cultivation through its joint venture with DEMECAN GmbH. Together, ICC and Wayland boast operations in 18 distinct geographies, all with a central function to supply high-quality cannabis to the global market. Equipped with experienced cross-functional teams, healthy treasuries, and the most robust license and asset portfolio in the industry, the companies will collectively champion the global consumer’s THC/CBD experience.”
International Cannabis and Wayland will capitalize on economies of scale to develop optimized production and distribution strategies, develop and license a house of brands, and gain market share with an early adopter status in new and emerging cannabis markets and verticals.
Europe’s population of over 740 million presents a potential market twice the size of the US and Canadian markets combined, a market experiencing supply shortages and still in its infancy compared to North America’s, presenting an immense opportunity, especially to those with the foresight to establish a presence now.
AgraFlora Pharmacy Augments Colombian Footprint
A day earlier, ICC announced the acquisition of AgraFlora Organics International’s Colombian pharmacy operations, Farma Swiss SAS, providing ICC with a brick-and-mortar presence to augment its cultivation capabilities and robust logistical infrastructure, as well as a compliant and secure platform for the distribution of medical cannabis and derivtaive products within Colombia. The inaugural Farma Swiss Colombian location also advances ICC’s plan for a custom pharmacy compound strategy.
The licensed pharmacy is strategically located in a high traffic commercial neighbourhood in Medellin, and equipped with several value-added services including on-site health-related services, an inbound call centre augmented by advanced supply-chain and CRM software suites, and a domestic delivery service.
Shpilt added, “The proposed acquisition of Farma Swiss represents yet another material development within the LATAM theatre for ICC; affording us the opportunity further leverage our first mover advantage within the Colombian medical cannabis market by directly servicing more than five million potential patients within the country. By integrating Farma Swiss’ intuitive pharmacy platform, with our 13-hectare cannabis centre of excellence and a preeminent catalogue of native Colombian cannabis genetics, ICC will continue to solidify its leadership position within Colombia’s high competitive medical cannabis marketplace, while streamlining patients access to our unique formulations.”
The acquisition follows several other recent commercial arrangements between ICC and AgraFlora, including a five-year term off-take agreement, whereby ICC may purchase up to 100,000 kgs of premium dried cannabis flower from AgraFlora’s Delta Greenhouse Complex, as well as the assignment of AgraFlora’s library of 20 rare native cannabis genetics from the regions of Valle del Cauca, Cauca, Magdalena and Antioquia in Colombia to International Cannabis, including prominent THC and CBD varietals.
AgraFlora Chairman and CEO, Brandon Boddy, said, “This strategic transaction further crystallizes our alliance with ICC with regards our collaborative pursuit of the burgeoning global cannabis trade. Monetizing of our flagship pharmacy operation to 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 hereby increasing our shareholdings in ICC as they continue to execute upon their international business mandate and embark upon realizing material cash flows.”
ICC is actively investigating complementary pharmacy related assets within Colombia that may serve as synergistic accompaniments to its acquisition of Farma Swiss.
International Cannabis Corp. has a proven record of prudent strategic partnerships and acquisitions which are playing a key role in advancing toward its ultimate goal of creating the first truly global “cannabis ecosystem”.
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