Khiron Life Sciences (TSXV: KHRN) to acquire NettaGrowth
Khiron Life Sciences (TSXV: KHRN) (OTCQB: KHRNF) announced it has signed a binding Letter of Intent to acquire NettaGrowth (NettaGro) that at closing will own 100% of the first licensee in Uruguay for the production of medical cannabis with CBD and THC for commercialization. This will also give KHRN access to a market of 75 million people residing in Southern Brazil. KHRN will issue 8,498,821 shares which, at $1.61 per share for 100% ownership, is valued at approximately CAN $13.7 million for a 100% interest in NettaGro is acquiring the Uruguayan license holder Dormul that is granted a cultivation capacity of up to 120 tonnes and 170,000 plants.
Through Uruguay’s membership in Mercosur (Mercado Comun del Cono Sur), an economic and political bloc made up of Argentina, Brazil, Paraguay, Uruguay and Venezuela, KHRN will be able to export cannabis from Uruguay (population: 3.5 million) to Southern Brazil (population: 75 million). The four founding members are in current negotiations for a trade agreement with the European Union (population: <500 million). This suggests the acquisition is immediately significant and could evolve into an enormous coup.
As time goes along, the brilliance of KHRN’s business plan becomes more and more visible. Each country in South and Latin America opens opportunities for Kuida, their CBD infused health and wellness line as well as new locations in which to open ILANs styled clinics. In addition, it attracts people. Kuida is under the management of Andrés Galofre who was already Chief Commercial Officer. With ILANs came Dr. Jairo Espinoza, a neurosurgeon and founder of ILANs who will be actively involved in replicating clinics in new jurisdictions KHRN enters and with the NettaGro, comes Joseph Mimran to the board of Khiron’s Colombian operating subsidiary. Mimran is an internationally known brand and retail visionary known for developing brands including Joe Fresh and Club Monaco. In addition, Michael Beck, an investor and venture capitalist will join KHRN’s Board of Directors subject to regulatory approval.
Khiron (TSXV: KHRN) continues to produce the real goods, in my opinion. I think it is an ideal investment for investors who want to own a company that is moving steadily and carefully into the medical cannabis industry in Latin and South America. That is why I have it as my largest position in The Cannabis Report Model Portfolio.