Pure Global Cannabis Announces International Expansion Into Latin America

Published: August 15, 2018

Pure Global Cannabis Announces International Expansion Into Latin America

Pure Global Cannabis Inc., a vertically-integrated, growth-oriented life sciences cannabis company, is pleased to announce that it has entered into a binding letter agreement with Avicanna Inc. to acquire a 60% interest in Avicanna’s Colombian subsidiary, Sativa Nativa S.A.S. In addition, Avicanna will also grant Pure Global an option to acquire an additional 15% in Sativa Nativa for an aggregate ownership of 75%.  Sativa Nativa has been issued a license for the cultivation of psychoactive cannabis and a license for the manufacture of cannabis derivatives by the Colombian Ministry of Justice and Ministry of Health.

Malay Panchal, President & CEO of Pure Global, stated: “This is an exciting day for Pure Global as we make our first entry into Latin America and kickstart our international growth plans. We have found an excellent partner in Avicanna, which has done a tremendous job building highly strategic relationships and assets in Colombia, as well as on-the-ground teams capable of executing our aggressive plans. Sativa Nativa is set to become our flagship international and equatorial asset, which we will leverage to produce low-cost inputs for value-added products destined for emerging export markets.”

Aras Azadian, CEO of Avicanna, commented: “In partnering with Pure Global, we have found a talented and like-minded team focused on bringing science-based innovations to the global cannabis marketplace. We look forward to combining resources and efforts with Mr. Panchal and his team to position Sativa Nativa as an industrial-scale, sustainable and economical producer of cannabinoids for international markets.”

Highlights of the Transaction

  • International expansion for Pure Global into emerging Latin America cannabis hub
  • Establish leading state-of-the-art greenhouses on 28 hectares of land, with further potential expansion available
  • Industrial-scale production and low-cost cultivation – plans for 1 million square foot state-of-the-art greenhouse in Santa Marta, Colombia with advanced technologies and automation to produce several fold greater than traditional methods
  • Competitive cost advantages of cultivation with an estimated cost per gram to be a fraction of Canadian licensed producers
  • Strong partnership with Avicanna which has joint ventures with Grupo Daabon, the largest organic agricultural company in the world, along with admission into Johnson & Johnson Innovation’s JLABS life sciences incubator in Toronto, Canada
  • Production capacity is for the cultivation of both high tetrahydrocannabinol (“THC”) content and cannabidiol (“CBD”) cannabis plants