Khiron strengthens market reach in Mexico and Chile (TSXV: KHRN)
Khiron Life Sciences Corp. (TSXV: KHRN) (OTCQB: KHRNF) has added four people to strengthen its market reach in Mexico and Chile and implement its joint venture initiative with Dixie Brands, a partnership that will bring more than 100 market-leading Dixie brands to Latin America.
In Toronto, John Cooke has been added as Vice President Corporate Development. Cooke’s background includes 25 years of capital markets experience as Managing Director and Partner at Beacon Securities and Senior Managing Partner at Paradigm Capital.
Luis Chavas has joined Khiron as Country Manager, Mexico. Chavas has over 20 years experience across Latin America with global brands including Pfizer and Wyeth and served as Business Unit head for Novartis Mexico.
Rodrigo Azócar comes on board as Country Manager, Chile. Azócar has 20+ years of experience in the Chilean pharmaceutical industry in marketing, brand positioning, management and corporate development and is currently a member of ASILFSA, the Chile-based association of pharmaceutical laboratories. With the closing of an agreement with Dayacann, Chile became KHRN’s second cultivation jurisdiction.
Rodrigo Durán becomes Lead, Dixie Brands Joint Venture. With over 17 years of experience in sales and marketing in the consumer goods and pharma industries in Latin America, Durán will be responsible for developing and executing a market strategy for the 100+ Dixie Brands cannabis-infused products under the JV.
In a separate but related announcement, KHRN announced it has signed a definitive agreement for the acquisition of NettaGrowth International Inc. (NGI) as previously announced on January 25, 2019. At closing NGI will own 100% of Dormul S.A. (Dormul), a Uruguayan company that obtained the first licence to produce and export medical cannabis with THC for commercialization in Uruguay. On closing, KHRN will issue 8,498,821 common shares to the shareholders of NettaGrowth at a deemed price of $1.61 per share.
In addition, Michael Beck, experienced capital markets professional and entrepreneur, and Joseph Mimran, experienced brand builder and entrepreneur, will join the board of Khiron and Khiron Colombia, respectively subject to completion of the acquisition and TSX Venture Exchange approval.
Alvaro Torres, CEO of Khiron, said, "…these Uruguayan licences provide us the opportunity to address a broader demographic of consumers and export products to key regions of the world….Uruguayan regulations permit the domestic and international distribution of flower. This is an excellent complement to our product focus in Colombia.”
Conclusion: When the NettaGrowth acquisition closes, KHRN will expand its multi-country licensed grower status with Uruguay joining Colombia and Chile and brings with it possible entry into Brazil and Europe. Mexico will follow when the new government passes a legalization proposal it has already tabled. In addition its Kuida CBD products will be marketed in the U.S. and it will have over 100 CBD products to distribute in Latin America as a result of the Dixie Brands Joint Venture.
All of this simply confirms my view that Khiron is the leader by far in the cannabis industry in Latin America and their growth cycle is still a lot closer to the beginning than the end. Investors who do not yet own KHRN should take advantage of the recent dip in the stock price to initiate positions. Those who already own KHRN should consider adding to their holdings if possible and at the very least hold on pending an expected stock price recovery.