Vancouver, B.C., July 10, 2018 – MYM Nutraceuticals Inc., (CSE: MYM) (“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.