VANCOUVER, British Columbia, Feb. 01, 2019 (GLOBE NEWSWIRE) -- ICC International Cannabis Corp. (CSE: WRLD.U)(FWB: 8K51)(OTC: KNHBF) ("ICC" or “International Cannabis” or the “Company”) is pleased to announce it has entered into an agreement to purchase 155 metric tonnes of processed industrial hemp from Eviana Health Corporation (“Eviana”) (CSE: EHC). International Cannabis has also simultaneously entered into a definitive agreement to acquire 100 per-cent of Future Hemp Corp. (“Future Hemp”), which holds an exclusive supply agreement for the delivery of 400 metric tonnes of certified organic hemp from a licensed Croatian producer (the “Future Hemp Agreement”).
This acquisition closes the loop for ICC, the Company now boasts: Local presence in 13 European countries via licensing or off-take agreements, supply on hand of product ready for sale starting in Q2 2019, an experienced operational team via the 49.9 acquisition of Wayland's assets, including the ability to formulate and produce various product lines, soon to be announced world class brands, 39,000 retail outlets for distribution and to top it all off, Europe's first dedicated insurance program for medical cannabis patients. This virtuous circle from local production, to remarkable brands and to patient support is believed to be unparalleled in the European market today.
The 155 metric tonnes of processed, extraction-ready hemp will be transported to Eviana’s existing Serbian facilities for immediate extraction in the coming days. The Companies estimate that by utilizing new extraction technology purchased by Eviana and integrated with their existing extraction equipment, the 155 metric tonnes of high-quality, organic cannabidiol (“CBD”) oils within 200 days.
Pursuant to the Future Hemp Agreement, the harvest of 400 tonnes of certified organic hemp is expected to take place in September 2019. Upon completion of the harvest, it is intended that the product will be sorted, processed and then transported for end extraction and distribution.
The immediate addition of already processed hemp which can be readily converted into high-quality, organic CBD oils allows the Company to fulfill its growing pipeline of purchase orders in an expedited fashion.
International Cannabis plans to leverage its developing portfolio of brands as well as its robust distribution network of over 39,000 European pharmacies to maximize margins and profitability by marketing and selling CBD products derived from its Serbian and Croatian industrial stockpiles.
Distribution of the Company’s Serbian and Croatian CBD-derived products will signal the launch of International Cannabis’ dedicated European sales campaign (see International Cannabis news release dated November 7, 2018). Upon completing a comprehensive analysis of European market conditions, the Company chose to initiate a committed European marketing and sales operation, with the objective of augmenting the unsolicited, inbound demand received to date. The European Union (“EU”) has over 500 million potential consumers, affording the Company a unique opportunity to service this high-growth marketplace.
Eugene Beukman, Chief Executive Officer and a Director of International Cannabis, stated: “These strategic acquisitions crystallize the Company’s ability to consistently supply our pan-European distribution network with a suite of organic CBD products. The now secured hemp inventories equip International Cannabis with the ability to deliver product to our distribution network starting in Q2 2019.
With ample stockpiles of processed hemp already in hand, this unique marriage with ICC’s distribution assets creates a truly synergistic union for shareholders of both Companies, which we are tremendously pleased to have architected to begin 2019.
This grants the Company additional ability to post significant operating numbers in 2019 and secure its first-mover advantage in what is probably the world’s largest and most important unified market for CBD products. By combining a material stockpile of already processed hemp with a steady pipeline of organic hemp available for harvest, ICC is fully equipped to execute upon its 2019 and 2020 purchase order obligations.
Organic CBD isolate is currently trading within the European Union at 12,000 Euro equivalent per kilogram, translating to hundreds of millions of dollars of realizable revenues to ICC. By further formulating and branding into a market starved for product, the Company could geometrically multiply this figure.”
International Cannabis, through its wholly owned subsidiary Marathon Global Inc., has an exclusive agreement with Cosmos Holdings Inc. (“Cosmos”), a European-based pharmaceutical distributor. Cosmos has a trans-European network of over 160 clients and vendors, which expands to 16 countries, including: Germany, United Kingdom, Ireland, United Arab Emirates, Denmark, Italy, France, Singapore, Spain, Lebanon, Skopje, Jordan, Sweden, Poland, the Netherlands and Greece. This European distribution network is augmented by various value-added services, including strategic procurement, warehousing, product registrations and regulatory representations.
ABOUT EVIANA HEALTH CORPORATION
Eviana controls a Serbian industrial hemp licence, which permits the cultivation, processing and sale of industrial hemp on 250 hectares of contracted agricultural land. Serbia has become an ideal destination to cultivate industrial hemp due to its fertile land parcels, access to established irrigation systems, low cost production, as well as an experienced agricultural workforce. Evian has amassed total processed industrial hemp inventories of approximately 310 metric tonnes.
Eviana is mandated with delivering customized consumer health care products using natural hemp strains of cannabis sativa for CBD-based topical creams and products and cosmeceutical and nutraceutical merchandise.
ABOUT FUTURE HEMP CORP.
Future Hemp holds an exclusive hemp supply agreement for the delivery of 400,000 kg of certified organic hemp from Croatian producer.
TERMS
Under the terms of the agreement, Eviana will commit the anticipated CAPEX required to extract the hemp stockpile.
ICC will issue 26.08 million shares to Eviana, as well as make a cash payment of C$1,000,000 to Eviana upon successful delivery of the first batch of pure, extracted CBD isolate. The Purchase Price Shares shall be subject to hold periods. One third of the shares issued to Evian will be subject to a hold period expiring on the date that is 4 months plus a day following the Closing Date, one third of the shares issued to Evian to be subject to a hold period expiring on the date that is 8 months following the Closing Date and the remaining third of the shares issued to Evian shall be subject to a hold period expiring on the date that is 12 months following the Closing Date.
International Cannabis will also provide access to its distribution network, and other ancillary expertise to Eviana.
The Company will also issue 32.6 million shares to Future Hemp, as well as fulfill certain royalty obligations. The shares issued to Future Hemp will be subject to a hold period expiring on the date that is 12 months plus a day following the Closing Date
A finder's fee is payable on this transaction.
ICC International, through its subsidiaries, has operating assets and is developing a world-class platform for cultivation, extraction, formulation and distribution across the globe in the United Kingdom, Denmark, Poland, Switzerland, Germany, Macedonia, Bulgaria, Serbia, Croatia, Greece, Italy, Portugal, Malta, Colombia, Argentina, Australia, South Africa and Lesotho.
ON BEHALF OF THE ICC INTERNATIONAL CANNABIS CORP BOARD OF DIRECTORS
“Eugene Beukman”
Eugene Beukman
CEO, Director
+1 (604) 687-2038
info@intlcannabiscorp.com
Learn more about ICC by visiting our website at: https://intlcannabiscorp.com/
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Notice Regarding Forward Looking Information:
This news release contains certain "forward-looking information" within the meaning of applicable Canadian securities law. Forward-looking information is frequently characterized by words such as "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or information that certain events or conditions "may" or "will" occur. This information is only a prediction. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking information throughout this news release. Forward-looking information includes, but is not limited to: political changes in Canada and internationally, future legislative and regulatory developments involving cannabis in Canada and internationally, the Company’s ability to secure distribution channels in international jurisdictions, competition and other risks affecting the Company in particular and the cannabis industry generally.
The forward-looking information contained in this release is expressly qualified by the foregoing cautionary statements and is made as of the date of this release. Except as may be required by applicable securities laws, the Company does not undertake any obligation to publicly update or revise any forward- looking information to reflect events or circumstances after the date of this release or to reflect the occurrence of unanticipated events, whether as a result of new information, future events or results, or otherwise.