Chemesis International Inc. has announced that it has signed a Letter of Intent (LOI) to buy 100% of La Finca Interacviva-Arachna Med SAS (La Finca), a Colombia-based integrated cannabis company. Chemesis International will buy La Finca for CAD$13.5 million in a mix of cash and common shares of the company, which will be decided on executing the definitive agreement.
Edgar Montero, CEO of Chemesis, mentioned that the company is expanding into the Latin American market, as it believes the region is prepared for international growth and expansion. Through this acquisition, the company would acquire an asset in a nation which is expanding its cannabis industry for distribution across the globe. The company will continue executing its business plan which is focused in developing long term growth in crucial markets across the globe, Montero added.
La Finca has seemingly partnered with Universidad Nacional de Colombia, the largest university in Colombia, to produce seed strains which enhance the yield of flower and biomass while shortening the crop cycles. Apparently, it has also allied with Universidad Distrital Francisco José de Caldas, that is focused on the educational side of cannabis cultivation.
As per records, La Finca currently has CAD$2.5-million available working capital and several manufacturing relationships to expand its operations. The company has a manufacturing agreement, under the La Finca brand, for licensed cosmetic products. The Instituto Nacional de Vigilancia de Medicamento (INVIMA) has granted license to these products and is equivalent to the U.S. Food and Drug Administration (U.S. FDA) in Colombia.
La Finca is believed to be specifically well positioned in a nation which is adapting cannabis regulations quickly, representing a profitable investment opportunity for both, short term and long term growth. All the stocks issued to La Finca will be subject to a phased 36-month lock-up period and the closing of the deal is subject to regulatory approvals.