Khiron Life Sciences Corp (CVE:KHRN) (OTCMKTS:KHRNF) (FRA:4KH) is no longer exclusively about its LATAM operations. Late afternoon, the company announced its latest expansionary foray—this time deep into European Union territory. Undoubtedly, it telegraphs KHRN’s intentions to branch out internationally and become a significant player on the world stage.
The company just announced it has entered a non-binding letter of agreement to acquire 100% of the outstanding securities of Canapalife S.r.l. and 100% of the economic interest in Campodoro S.r.l. Canapalife is a prominent hemp product company based in Italy with licenses for the cultivation, research, production and marketing of hemp-based products. It has registered three CBD consumer brands that are in-marketed through established partnerships with pharmacies and independent retail chains across Italy.
As consideration for the acquisition of Canapalife Group, Khiron Life Sciences will issue such number of common shares equal to C$10,500,000 at a deemed value equal to its 20-day exchange price VWAP. An additional common shares earn-out for up to C$4,500,000 is possibly, subject to certain revenue milestones.
With the acquisition, Khiron Life Sciences joins other prominent licensed producers such as Green Organic Dutchman Holdings, Canopy Rivers, and others with significant Italian hemp cultivation and (CBD) distribution arrangements. According to the presser, Italy represents the fourth largest economy in Europe, with the second largest cannabis market in Europe. Prohibition Partners pegs Italy’s projects medical cannabis market value at € 7.5 Billion by 2028.
This is the second time in as many years Khiron has made a material announcement during their presence at a CannaMexico World Summit.
On Day 1 of the 2018 CannaMexico World Summit last May, the company announced the Colombia National Food and Drug Surveillance Institute (INVIMA) granted it authorization for the production, sale and export of four CBD-based products. On Day 2, Khiron appointed former DEA Chief of Pharmaceutical Investigations Matt Murphy as Vice President of Compliance. Most importantly, the summit set the foundation for perhaps the biggest event in the company’s short history up until that point: the appointment of former Mexican President Vincente Fox seven weeks later.
Whether it’s the chicken or the egg scenario at play here is irrelevant. When it comes to the CannaMexico World Summit, the company tends to get things done.
At publishing time, investors have responded favorably to the news. KHRN is higher by $0.14 to $ 3.21 (4.56%) on average recent volume.
Midas Letter will have further coverage as events warrant.
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