VANCOUVER, British Columbia, July 10, 2018
VANCOUVER, British Columbia, July 10, 2018 /PRNewswire/ --
MYM Nutraceuticals Inc., (CSE: MYM) (OTC:MYMMF)(CSE: MYM.CN) (MYM.CN) ("MYM") is pleased to announce that it has entered into an Investment Agreement to acquire a 49% stake in Colombian cannabis company, Colombia Organica, that currently holds a seed to sale license for low THC cannabis. This license permits Colombia Organica to grow, produce and create cannabis derivatives to be commercialized and / or exported. Further, Colombia Organica is in the licensing process for the cultivation and production of high THC cannabis extracts.
MYM and Colombia Organica have plans to build a production facility near Medellin, Colombia for the cultivation and processing of cannabis and cannabis products. Currently, Colombia Organica is developing and registering seed strains with the Colombian Agricultural Institute.
Colombia Organica currently holds a lease for a 36-acre (14.5 hectares) property located 44 kms from Medellin in the Municipality of San Pedro de los Milagros, in the Northern Region of the Aburra Valley. The region's growing conditions are conducive for growing cannabis with an average temperature of 16-18 °C, and an elevation of 2,475 meters above sea-level. Colombia Organica has secured an option to buy the property.
"We are extremely pleased to partner with our new friends at Colombia Organica," said Rob Gietl, CEO of MYM. "With low production costs expected to be less than 20 cents per gram versus Canadian producers at $1.25 per gram or higher, ideal climate, and a large pool of skilled, low cost agricultural labour, highly developed logistic chains, and a highly supportive federal government, Colombia is anticipated to dominate global markets for cannabis production."
The International Board for the Control of Narcotics recently assigned Colombia a quota equal to 44% of global medicinal cannabis production, giving Colombia a major advantage in the global export market. MYM and Colombia Organica plan to leverage Colombia's outside quotas to export cannabis derivatives for medicinal purposes to legal markets throughout the world.
In exchange for CDN $2,500,000, MYM will acquire 49% of the share capital of Colombia Organica and hold 50% of the voting shares. The purchase price will be disbursed to Colombia Organica as follows: (1) CDN$650,000 upon verification of Colombia Organica's licenses, permits, quotas, and seed registrations, and the details of the property upon which the facility will be constructed; (2) CDN $650,000 on September 1, 2018, provided that MYM has reviewed and approved of the budget for the construction of Colombia Organica's production facility, including greenhouses, irrigation, lights, equipment and physical barriers; and (3) the balance of the purchase price through MYM's purchase of equipment for the facility, as pre-approved by Colombia Organica.
The Investment Agreement further provides that MYM and Colombia Organica both agree to use their best efforts to raise and/or arrange financing of up to CDN $15,000,000 to finance the further build-out of the production facility, including construction of greenhouses, purchase of extraction equipment, and infrastructure development.
A finder's fee equal to 6.5% of the aggregate purchase price will be paid in connection with the transaction.
The Investment Agreement is subject to all required approvals and MYM's due diligence.
About Colombia Organica
Colombia Organica is a Colombian company with expertise in the manufacture of pharmaceutical products, medicinal chemical substances and botanical products. The Company holds a seed to sale license for low THC cannabis and is in the application process for both high THC cannabis cultivation and extraction. Colombia Organica has selected for production high quality plants which are suited to the unique high altitude, equatorial regions of Antioquia, Colombia.
About MYM Nutraceuticals Inc.
MYM Nutraceuticals Inc. is an innovative company focused on acquiring Health Canada licenses to produce and sell high-end organic medicinal cannabis supplements and topical products. MYM is a shareholder in two production projects in Quebec that when completed is anticipated to have over 1.5 million square feet of production space. MYM is also a shareholder in a production project (Northern Rivers Project) in New South Wales, Australia that is expected to have 1.2 million square feet of production space. Australia is an exciting new market that has recently legalized medicinal cannabis. To ensure a strong presence and growth potential within the industry, MYM is actively looking to acquire complementary businesses and assets in the technology, nutraceuticals and CBD sectors. MYM shares trade in Canada, Germany and the USA under the following symbols: (CSE:MYM) (OTC:MYMMF) (FRA:0MY) (DEU:0MY) (MUN:0MY) (STU:0MY).
ON BEHALF OF THE BOARD
Rob Gietl, CEO
MYM Nutraceuticals Inc.
Keep up to date with MYM on our social media channels:
Cautionary Note Regarding Forward-Looking Statements: This release includes certain statements and information that constitute forward-looking information within the meaning of applicable Canadian securities laws, including statements regarding the building of a cannabis production facility near Medellin, Colombia, Colombia Organica's potential export of cannabis derivatives for medicinal use to foreign countries, the acquisition of an interest in Colombia Organica pursuant to the Investment Agreement (the "Transaction"), the anticipated low cost of cannabis production in Columbia, the anticipated combined production space of 1.8 million square feet for the two production projects in Quebec, the anticipated 1.2 million square feet of production space in the Northern Rivers Project and the anticipated dominance Colombia will have in exporting to foreign countries cannabis and cannabis related products for medicinal use. Generally, forward-looking statements and information can be identified by the use of forward-looking terminology such as "intends," "anticipates," "it is expected," or variations of such words and phrases, or statements that certain actions, events or results "may," "could," "should," or "would" occur. Forward-looking statements are based on certain material assumptions and analyses made by the Company and the opinions and estimates of management as of the date of this press release, including the assumption that all conditions precedent to completion of the Transaction will be satisfied or waived and the Transaction will complete on the terms set out in the Investment Agreement, the cannabis production facility will be successfully built near Medellin, Colombia as anticipated by MYM, that Colombia Organica will successfully produce and export cannabis derivatives to foreign countries that have legalized the medicinal use of cannabis, that the production cost of cannabis production in Colombia will be significantly cheaper than the cost of cannabis production in Canada, that MYM's projects in Quebec will be completed as planned, with 1.5 million square feet of greenhouse space, that the Northern Rivers Project will be completed as planned, including the construction and operation of 1.2 million square feet of production space, the terms and conditions of the acquisition agreement with Colombia Organica will be fulfilled as anticipated and that Colombia will have a significant advantage to other countries in exporting to foreign countries cannabis and cannabis related products for medicinal use. Although the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect, and the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such risk factors may include, among others, the risk that a condition precedent to completion of the Transaction will not be satisfied or waived or that the Transaction will otherwise not complete on the terms set out in the Investment Agreement or at all, that the building of the cannabis production facility near Medellin, Colombia will not be constructed as anticipated due to unforeseen complications, Colombia Organica will not successfully produce cannabis derivatives for medicinal use and therefore will be unable to successfully export such products for consumption in foreign countries, the production cost in Colombia will be significantly more expensive due to unforeseen complications and unanticipated costs, the Northern Rivers Project will not be successfully built as planned, MYM's Quebec projects will not be successfully built as planned, that Colombia will not be able to successfully utilize its anticipated advantages for cannabis production and therefore will not dominate the export market for cannabis and cannabis related products for medicinal use and the other risks and uncertainties applicable to the Company's business as set forth in the Company's management discussion and analysis and annual information form and the Company's other disclosure available under the Company's profile at http://www.sedar.com. There can be no assurance that the Transaction will complete. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements and forward-looking information. Readers are cautioned that reliance on such information may not be appropriate for other purposes. The Company does not undertake to update any forward-looking statement, forward-looking information or financial outlook that is incorporated by reference herein, except in accordance with applicable securities laws. We seek safe harbor.