VANCOUVER, British Columbia, May 22, 2019 (GLOBE NEWSWIRE) -- ICC International Cannabis Corp. (CSE: WRLD.U)(FWB: 8K51)(OTC: WLDCF) ("ICC" or “International Cannabis”) is pleased to announce that the Company has entered into a commercial rights and off-take agreement with AgraFlora Organics International Inc. (“AgraFlora”) (CSE: AGRA) (Frankfurt: PU31) (OTCPK: PUFXF), whereby ICC may purchase up to 100,000,000 grams of premium dried cannabis flower from AgraFlora’s Delta Greenhouse Complex cultivation operations, over a five year term.
ICC will leverage its advanced global downstream capabilities, including its European distribution footprint of 80,000 pharmacies and 300,000 retail end-points to market premium cannabis under the Company’s diverse brands and banners.
Further to its downstream capabilities, International Cannabis is equipped with a trans-European wholesale distribution network, spanning 16 countries, including: Germany, United Kingdom, Ireland, Denmark, Italy, France, Singapore, Spain, Poland, the Netherlands and Greece.
Boasting 2.2 million square feet of grow space under glass, AgraFlora and its Joint Venture partner have been collaborating with Health Canada since June 2018 to prepare the large-scale, ready-made Delta Greenhouse Complex for licensing. As a result of this commercial rights and off-take agreement, AgraFlora has committed to allocating 10 per cent of the Delta Greenhouse Complex’s cumulative flower footprint to ICC.
AgraFlora’s Delta Greenhouse Complex is widely considered to be one of the most technically advanced and environmentally friendly greenhouse operations in the World, equipped with industry leading cultivation infrastructure.
In anticipation of the Company’s inaugural off-take delivery from AgraFlora, ICC is architecting its first purpose-built, EU-GMP-complaint cannabis processing, manufacturing and packaging facility (the “Finishing Facility”). It is anticipated that ICC’s Finishing Facility will function as a premier European cannabis-processing hub, through which:
- Cannabis produced/procured from ICC’s contract farming and off-take agreements can be securely shipped to the Finishing Facility;
- Cannabis manufacturing and processing will then be initiated at ICC’s Finishing Facility according to GMP-certified manufacturing specifications and SOPs;
- The now finished GMP-certified cannabis can be packaged for export and/or leveraged as GMP-compliant cannabis inputs to produce a portfolio of diverse, designer product formulations;
GMP-certified cannabis products are eligible for import/export to the European Union (“EU”), thus achieving higher margins, all while removing barriers to entry for the penetration of high value EU patient populations Good Manufacturing Practices (“GMP”) certification is an internationally recognized system, mandated with ensuring all produced goods meet the highest consumer health and safety standard.
David Shpilt, Chief Executive Officer of International Cannabis stated: “ICC is pleased to formalize yet another material supply agreement; further crystalizing the Company’s access to a pipeline of premium dried cannabis flower. Agraflora and its JV partner are equipped with over 30 years of cultivation expertise, instilling us with on-going confidence to consistently deliver a safe supply of medicine for our high value patient populations.
International Cannabis’ geographic asset footprint, globally recognized production certification and planned Finishing Facility will provide the Company with global trade route arbitrage advantages.
This off-take agreement is strategically structured to leverage existing market maturity, all while capitalizing on emerging market opportunities of today and tomorrow. With this agreement, ICC will leverage the anticipated throughput and low cost of production from the Delta Greenhouse Complex to realize a significant source of high-quality dried flower.”
Subject to the terms of the commercial rights and off-take agreement, International Cannabis may purchase up to 20,000 kg of dried cannabis per annum for a 5-year term from Agraflora's large-scale Delta Greenhouse Complex, representing 100,000,000 grams over the duration of the initial term.
The aforementioned commercial rights and off-take agreements are contingent on AgraFlora’s receiving its cultivation and sales licences from Health Canada for its Delta Greenhouse Complex operations.
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
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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.