Highlights of proposed transaction, include ICC gaining:
VANCOUVER, BRITISH COLUMBIA -- (March 28, 2018) – ICC Labs Inc. (“ICC Labs” or the “Company”) (TSX-V: ICC / Frankfurt: 2Q9) is pleased to announce that it has signed a term sheet (the “Term Sheet”) for a proposed strategic investment in Global Group Kalapa S.L. (“KALAPA”), a private company headquartered in Barcelona.
According to the Term Sheet, ICC Labs may acquire an initial 25% equity stake in KALAPA to be paid with a combination of cash, pure CBD produced by ICC Labs, and common shares of ICC Labs with the option to acquire the remaining 75% prior to the end of 2018.
ICC Labs intends to close the initial 25% equity stake in April 2018, with such closing remaining subject to TSX Venture Exchange (the “TSX-V”) approval and other customary closing conditions, including negotiating and entering into definitive transaction documents and the completion of due diligence.
Founded in 2014, KALAPA, through its various holdings, covers the value chain of medical cannabis from production to distribution. KALAPA’s current holdings are described below.
KSK Labs S.L. is a whole-owned subsidiary of KALAPA. KSK Labs intends to research, develop, manufacture and distribute a product portfolio of registered CBD products based on cannabidiol (CBD) under the MyCBD and CBDinol brands, in partnership with UNG Labs S.L. (United Natural Green Labs).
This year, Kalapa Clinic also intends to launch the TIMCI (The International Medical Cannabis Institute), which will offer training and webinar certified courses on medical cannabis conducted by professionals.
KALAPA additionally is a joint venture partner in two additional projects: (i) CBM Labs, based in The Netherlands, which seeks to develop cannabinoid-based medicines and has applied for applicable medicinal licenses; and (ii) CanPharma GmbH, a company seeking to import cannabis flowers and derivates into the German market, which has applied for the certain medicinal cannabis import licenses.
“We are happy to join forces with ICC Labs in a project with a truly global perspective. Importantly, this potential venture not only facilitates access to high quality raw material and products, but also provides opportunities to conduct joint R&D. Furthermore, we intend to develop a B2B channels with European pharmacies together, most likely with the ICC brand “BIDIOL”, says Dr. Henrik Sprengel, CEO of KALAPA.
“We have found a perfect partner in KALAPA as part of our strategy to get a strong foothold into the European markets, especially for facilitating B2B distribution channels for products that we intend to sell, such as our proprietary line of CBD oil branded 'BIDIOL'. Furthermore, KALAPA has an excellent history of product development, and profound knowledge on the effects of cannabinoids as we continue our R&D plan and develop our API’s and pre-clinical trials in the second quarter of this year”, commented Alejandro Antalich, Chief Executive Officer of ICC Labs.
“Having operations in a low cost jurisdiction, Uruguay, and proposed operations in another low cost jurisdiction, Colombia, will give us a great advantage in supplying high-quality cannabis products at extremely competitive prices to Europe. We are also looking forward to our first outdoor harvest of high-CBD cannabis in Uruguay in April this year”, he added.
ABOUT ICC LABS INC.
ICC Labs is a fully licensed producer and distributor of medicinal cannabinoid extracts, recreational cannabis and industrial hemp products in Uruguay as well as a fully licensed producer of medicinal cannabis in Colombia. The Company has active operations in Uruguay, and is focused on becoming the worldwide leading producer of cannabinoids extracts, giving support and promoting the responsible use for medicinal purposes, backed by scientific research and innovation, while following strict compliance and the highest standards for quality and safety.
For more information, please visit www.icclabs.com.
ICC Labs Inc.
Alejandro Antalich, Chief Executive Officer