Khiron Life Sciences Corp., an integrated medical cannabis company with its core operations in Colombia, has signed the definitive agreement for the acquisition of the Latin American Institute of Neurology and the Nervous System (“ILANS”) previously announced on August 7, 2018. ILANS is one of the most respected, fastest growing, and largest neurological clinics in Colombia, and becomes a cornerstone of the Khiron Clinics business unit in Latin America.
The ILANS network represents 100,000 patients in Colombia and will position Khiron with approximately C$10.5 Millionin gross revenue and C$1.8 Million of EBITDA (2017 Audited Financial Statements). The ILANS acquisition provides a secure revenue stream.
Alvaro Torres, Khiron Co-founder and Chief Executive Officer stated, “After the closing of the ILANS agreement, we generate immediate revenue and greatly reduce patient acquisition costs. With Dr. Jairo Espinoza, ILANS´ founder and one of Colombia´s most respected specialists joining our senior executive management team, we are positioned to leverage the existing ILANS patient base to grow the Khiron Clinics business unit throughout Colombia and across Latin America, in keeping with our clinic expansion strategy.”
Material terms set forth in the definitive agreement include:
- Issuance of 1,400,000 common shares, at C$1.50 per share, upon closing of the transaction
- Cash payment of C$4,730,000 over a period of two years. The future cash payments will be secured by a promissory note
- Cash payment of C$5.0 million for the attainment of milestones pertaining to patient acquisition up to a period of two years after closing of the transaction
The closing of this acquisition is subject to approval from the TSX Venture Exchange.