VANCOUVER, British Columbia, May 10, 2019 (GLOBE NEWSWIRE) — ICC International Cannabis Corp. (CSE: WRLD.U)(FWB: 8K51)(OTC: WLDCF) (“ICC” or “International Cannabis”) is pleased to announce it has completed a US$1.5 million strategic investment into the Indus Cannabis Company Corporation (“IndusCann”), a private entity actively pursuing cannabinoid commercialization within the Republic of India.
IndusCann has entered into a three-year exclusive Research and Development Partnership Agreement (the “RDPA”) with the Indian Institute of Integrative Medicine (“IIIM”). The IIIM is a premier national research institute under the Council of Scientific & Industrial Research (“CSIR”) of India, dedicated to the discovery of pharmaceuticals derived from natural products such as medicinal plants and microbial species.
In collaboration with the IIIM and the CSIR, IndusCann has been mandated with:
- The detection and subsequent commercialization of cannabinoid-derived pharmaceutical compounds for the Indian marketplace;
- Establishing clinical cannabinoid efficacy and expediting clinical pharmaceutical pathways for phytopharmaceutical products;
- Collaborating with Indian state and federal agencies to devise sustainable cannabis regulations, including commercial production, import/export and distribution;
- The development of SOPs, in preparation of India’s highly anticipated commercial cannabis cultivation regulations;
- Comprehensive mapping and cataloging campaigns of over 500 unique landrace cannabis genotypes and phenotypes, specifically sourced from the widely celebrated Hindu Kush and Himalayan regions;
- Centralizing cannabinoid IP and product development through complementary R&D partnerships with the All India Institutes of Medical Sciences (“AIIMS”), as well as leading Indian hospitals; and,
- Administering both human and animal cannabinoid-centric clinical trials
IndusCann also anticipates receipt of an Indian cannabis import/export license, which is expected to permit the export of EU-GMP certified medical cannabis to the European Union (“EU”) and the Asia Pacific region. In anticipation, the Company is currently working to design and construct the first purpose-built EU-GMP complaint Indoor Grow, Processing and Packaging Facility. This license will also enable the importation of select, high-value strains and tissue culture from preeminent European seed banks, as well as Tier 1 Canadian Licensed Producers (“LPs”).
Concurrently, ICC and the Company have entered into binding letter of intent (“LOI”), dated April 28, 2019 pursuant to which the Companies will enter into a commercial rights and supply agreement, contingent to IndusCann receiving the aforementioned import/export license, whereby:
- ICC will supply the company with up to 30,000,000 grams of premium cannabis flower, as well as bulk cannabis resin, bulk CBD isolate and bulk CBD distillate for initial R&D initiatives and eventual commercial applications;
- ICC has secured right-of-first-refusal (“ROFR”) to purchase a portion of IndusCann’s future EU-GMP complaint production at cost plus 20 per cent;
- ICC will act as the company’s European distributor for cannabis products;
- ICC will be granted co-ownership of data derived from the company’s cannabinoid clinical trials with product supplied by ICC; and,
- ICC will be granted co-ownership in all cannabis product formulations developed under the IndusCann corporate umbrella
- International Cannabis has been granted a call-option for further equity participation in IndusCann Private Ltd. for an additional US$4 million.
The commercial rights and supply agreement does not explicitly reference any supply-side guarantees and is proposed to extend over a period of three years. A fixed pricing matrix will be finalized upon IndusCann’s receipt of the aforementioned import/export license.
In addition to ICC’s proposed 30,000 kilogram, three-year supply agreement with Wayland Group Corp. (see ICC news release dated April 23, 2019), the Company’s internal forecasts indicate that upon completion of its ongoing production build outs in Denmark, Colombia and Lesotho, ICC will be equipped with the necessary cultivation capabilities to satisfy the IndusCann supply agreement.
Vijendra Gairola, an economic development veteran as a Chief Representative for India, and Co-Founder of IndusCann Research Private Ltd., expressed that: “With the completion of this transaction, IndusCann becomes firmly anchored to achieving all of its research and commercial cultivation objectives.
“International Cannabis’ commitments will support IndusCann’s unique ability to conduct large-scale research for both human and veterinary use. Their global supply chain of GMP compliant medical cannabis and deep experienced team of subject matter experts accelerate IndusCann on its path to being a long-term supplier to India’s future medical marketplace”.
David Shpilt, Chief Executive Officer of International Cannabis stated: “This strategic deployment of capital affords ICC preeminent exposure to one of the World’s largest domestic cannabis markets. Together, we are positioned to capitalize on a first mover advantage within India’s vast addressable patient population.
“In addition to its R&D agreement and anticipated import/export license, the company is armed with deep-seated relationships within India’s proliferating generic pharmaceutical manufacturing industry, which is one of the largest in the world. India’s established generic pharmaceutical manufacturing infrastructure will position the Country as the transcendent jurisdiction for cannabis finishing/processing, as well as eventual product formulations”.
“It is estimated that over 600 million Indians experience symptoms derived from indications which medical cannabis may treat, remedy or ultimately alleviate. The Company’s proposed Indian commercial rights and supply agreements will enable ICC to realize sustainable cash flows, all while advancing clinical cannabinoid efficacy and expediting clinical pharmaceutical pathway for phytopharmaceutical products”.
The Company also announces it has terminated its previously announced acquisition of Balkan Cannabis Corp. (see ICC news releases dated December 21, 2018).
A finder’s fee is payable on this transaction.
ABOUT INTERNATIONAL CANNABIS
ICC International Cannabis, 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
Chief Executive Officer
+001 (647) 427-2208
Investor Relations Contact:
+001 (416) 597-5769
For ICC French inquiries:
Remy Scalabrini, Maricom Inc.
E: [email protected] T: +001 (888) 585-MARI
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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.