Vancouver, British Columbia--(Newsfile Corp. - January 21, 2021) - CannaVerde Pharma Inc. ("CannaVerde" or the "Company"), a privately held Canadian medical cannabis company with operations in Colombia, is pleased to announce that it has entered into a binding letter of intent (the "LOI") to purchase 50% of the issued and outstanding shares of Medical Precision Care S.A.S. ("Medical Precision"), a master pharmacy exclusively focused on the research and development of cannabis-based pharmaceutical products in Latin America.
"This acquisition cements CannaVerde as one of the leading medical cannabis companies in Colombia and Latin America. I have to commend our team, whose strong in-country relationships translated into an agreement with Medical Precision amidst competitive offers from other Colombian cannabis producers," commented CannaVerde CEO, Michael Nistorescu. "Medical Precision is the only master pharmacy exclusively focused on the development of cannabis-based pharmaceutical products, which uniquely positions CannaVerde to address a patient base estimated to exceed 68 million in Latin America, resulting in the generation of significant revenues in the months and years to come."
With this acquisition, CannaVerde is now vertically integrated and fully licensed for cultivation, extraction, manufacture, domestic distribution, and export of cannabis-based products and derivatives.
Through Medical Precision's compounding pharmacy, CannaVerde will be able to fill medical cannabis prescriptions for patients managing conditions such as chronic pain, sleep disorders, anxiety, depression, epilepsy, and others. The Company also intends to produce dermatological products in various topical forms. This strategic acquisition represents an important milestone in the Company's goal of achieving diversified revenue streams.
"We are delighted to partner with CannaVerde Pharma and advance our common vision of becoming one of the leading medical cannabis companies in Latin America. CannaVerde's strong team of doctors and scientists, coupled with their full suite of cannabis licenses and ability to produce high quality plant-derived cannabinoids, will give us a strong competitive advantage as we set out to deliver medical cannabis to patients across Colombia and Latin America," commented Juan Carlos Rey, CEO of Medical Precision Care.
Pursuant to the terms of the LOI, the purchase price for the 50% interest in Medical Precision Care is USD $1.4 million, comprised of $1,000,000 in cash and $400,000 in shares of CannaVerde, subject to certain customary conditions precedent such as completing due diligence and closing a concurrent financing of at least USD $2.5 million.
CannaVerde is a Canadian-domiciled medical cannabis company with operations in Colombia. The company's wholly owned subsidiary, Green Health Colombia S.A.S., holds licenses to cultivate, extract, manufacture, domestically distribute, and export psychoactive and non-psychoactive medical cannabis products and derivatives. The Company has registered eight strains with varying CBD, CBG, and THC profiles with the Colombian Agricultural Institute, and has a further 57 strains in the documentation process.
About Medical Precision Care
Medical Precision Care is a master pharmacy exclusively focused on research and development of cannabis-based pharmaceutical products in Latin America. The company develops products tailored to the characteristics of the patient as well as the pharmacological indications of the prescribing doctor, with the ability to isolate cannabinoids with 99.9% purity, guaranteeing precise dosage in every product. Medical Precision Care has received the Good Elaboration Practices certification from INVIMA and intends to develop patches, tablets, sublingual drops, and topicals for conditions related to chronic pain, sleep disorders, anxiety, depression, epilepsy, and other medical conditions.
For more information please contact:
Phone: 1 (416) 882-9006
Forward-Looking Information Statement
This news release contains statements and information that, to the extent that they are not historical fact, constitute "forward-looking information" within the meaning of applicable securities legislation. Forward-looking information is based on the reasonable assumptions, estimates, analysis, and opinions of management made in light of its experience and its perception of trends, current conditions, and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made, but which may prove to be incorrect.
Forward-looking information involves known and unknown risks, uncertainties and other factors that may cause the actual results, performance, or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking information. Accordingly, readers should not place undue reliance on any such forward-looking information. Further, any forward-looking statement speaks only as of the date on which such statement is made. New factors emerge from time to time, and it is not possible for the Company's management to predict all of such factors and to assess in advance the impact of each such factor on the Company's business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. The Company does not undertake any obligation to update any forward-looking information to reflect information, events, results, circumstances or otherwise after the date hereof or to reflect the occurrence of unanticipated events, except as required by law. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities.
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