VANCOUVER, British Columbia, Nov. 05, 2018 (GLOBE NEWSWIRE) — Chemesis International Inc. (CSE: CSI) (OTC: CADMF) (FRA: CWAA) (the “Company” or “Chemesis”), is pleased to announce that it has entered into a binding Letter of Intent (“LOI”) to acquire 100% of Colombia-based La Finca Interacviva-Arachna Med SAS (“La Finca”), an integrated cannabis company that has been licensed and operational in Colombia since October, 2017.
La Finca has access to over 1000 acres of outdoor cultivation land and is aggressively exploring opportunities to expand. It is a founding member for the “Association for the Promotion of Hemp Growing,” a non-profit entity that is concentrated on providing education and promoting the expansion of cannabis plantations, while ensuring the growth of high-quality crops through technical advice. The company’s cultivation program is based on a decentralized model with partner farmers throughout the country, allowing small farmers to quickly generate high quality crops. Currently, La Finca has relationships with over 2,000 farming families across Colombia through various co-ops that comprise its land package.
La Finca also has a partnership with the largest university in Colombia, Universidad Nacional de Colombia, to develop seed strains that improve the yield of biomass and flower while shortening crop cycles. It has also partnered with Universidad Distrital Francisco José de Caldas, which focuses on the educational aspects of cannabis cultivation. The university provides distance education as well as in-class instruction to educate farmers on cannabis crops, ensuring they are able to produce high quality crops.
La Finca currently has several manufacturing relationships and CAD$2.5-million working capital available to expand its operations. The company has a manufacturing agreement for licensed cosmetic products under the La Finca brand. These products are licenced through the Instituto Nacional de Vigilancia de Medicamento (INVIMA) which is Colombia’s equivalent to the US Food and Drug Administration (US FDA). The company is heavily involved with INVIMA ensuring compliance with all regulations and health requirements.
Colombia is located close to the equator and boasts a 12-hour sun cycle that occurs year-round, allowing for harvesting to occur 365 days a year1. The mountainous geography of Colombia provides different thermal floors which allow for cultivation to occur in multiple climates, simultaneously. Colombia also has many free trade agreements that will allow for cost effective export of cannabis products around the world. The Company believes La Finca is particularly well positioned in a country that is quickly adapting cannabis regulations, thus providing an extremely lucrative investment opportunity for both short and long-term growth.
“Chemesis is continuing its expansion into the Latin American market, a region the Company believes is poised for international growth and expansion,” said Chemesis CEO, Edgar Montero. “With the acquisition of La Finca, the Company will acquire an asset in a country that is developing its cannabis industry for distribution around the world. We continue to execute our business plan that is focused on building long term growth in key markets around the world.”
The Company will acquire La Finca for $13,500,000 CAD in a combination of cash and common shares of the Company to be determined upon execution of the definitive agreement. All stock issued will be subject to a 36-month phased lock-up period. Closing of the transactions contemplated by the LOI are subject to regulatory approval.
About Chemesis International Inc.
Chemesis International Inc. is a vertically integrated global leader in the cannabis industry, currently operating within Puerto Rico, and California.
Chemesis is developing a strong foothold in key markets, from cultivation, to manufacturing, distribution, and retail. Chemesis has facilities in both Puerto Rico and California, allowing for cost effective production and distribution of its products. In addition, Chemesis leverages exclusive brands and partnerships and uses the highest quality extraction methods, to provide consumers with quality cannabis products.
Chemesis will add shareholder value by exploring opportunities in emerging markets while consistently delivering quality product to its consumers from seed to sale.
ON BEHALF OF THE BOARD OF DIRECTORS
CEO and Director
Forward-Looking Information: This news release contains “forward-looking information” within the meaning of applicable securities laws, including with respect to statements regarding the acquisition of La Finca, and La Finca’s business operations and potential. Although the Company believes that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking information. Such forward-looking statements are subject to risks and uncertainties that may cause actual results, performance and developments to differ materially from those contemplated by these statements depending on, among other things, the risks that the Company’s products and plan will vary from those stated in this news release and the Company may not be able to carry out its business plans as expected. Except as required by law, the Company expressly disclaims any obligation and does not intend, to update any forward-looking statements or forward-looking information in this news release. Although the Company believes that the expectations reflected in the forward-looking information are reasonable, there can be no assurance that such expectations will prove to be correct and makes no reference to profitability based on sales reported. The statements in this news release are made as of the date of this release.