Ikänik Farms Becomes the First to Claim "Hecho en Mexico" for Hemp and Cannabis through the 100% Acquisition of D9C Mexico S.A. DE C.V.
Ikänik Farms to export its agronomically-certified Colombian cannabis seeds for cultivating hemp and pharmaceutical cannabis under an Amparo.
CORONA, Calif., June 29, 2020 /CNW/ - Ikänik Farms, Inc. (the "Company" or "Ikänik") is pleased to announce it has purchased all issued and outstanding shares of Delta 9 Corporation Mexico S.A. de C.V ("D9C"), based in Coyoacán, Mexico. D9C's legal representative is permitted to import and register cannabis seeds for cultivation through the legalized Amparo process. The Company intends to contract-produce for national and international pharmaceutical cannabis and hemp-derived CBD clients.
"I am very excited to welcome D9C and its team of scientific, legal, and regulatory specialists who have been exemplary leaders, shepherding the cannabis legalization process, and providing Ikänik the opportunity to be a 1 of 1 in Mexico", said Brian Baca, CEO of Ikänik Farms, Inc.
D9C is the exclusive Amparo representative to import, cultivate, and produce products derived from cannabis and hemp for national and international markets.
Borja Sanz de Madrid, President of Ikänik International, Inc. further emphasized, "We are proud to participate in this historic moment for Mexico. It will be our honor bringing pharmaceutical cannabis Hecho en Mexico para el mundo"
Upon D9C's legal representative completing the seed importation and registration process, cultivation and facility construction will commence, providing employment opportunities and social support in the communities it serves.
This acquisition marks a significant milestone for the Company, as it continues to grow its multi-national operating presence and prepares to complete a public listing on the Canadian Securities Exchange.
Transaction Highlights
- First-Mover Advantage: D9C will provide Ikänik unparalleled speed and access to the Mexican and international marketplace. It will be the first to import certified and licensed seeds for genetic registration from Ikänik's Colombian GACP and GMP-PHARMA certified "Casa Flores" location, paving the way for cultivation activities and building a state-of-the-art complex for cannabis production.
- Diversified Product Portfolio for Domestic Sales: Ikänik Farms, will sell products under its family of brands, providing a broader target audience for pharmaceutical retail partners across Mexico.
- Stable Supply for International Supply Agreements: D9C provides Ikänik the ability to continue effectively scale and fill its growing international supply agreements for pharmaceutical grade Cannabis and Hemp derived CBD, pending receipt of permits.
Acquisition Summary
Under the Agreement between Ikänik and D9C (the "Agreement"), the shareholders of D9C agreed to transfer to Ikänik all outstanding shares of D9C (the "D9C Shares") in exchange for consideration of up to 10,000,000 common shares of Ikänik (the "Ikänik Shares"). The Ikänik Shares are to be transferred in the amounts and subject to the completion of the conditions set out below:
- within 10 business days following the receipt of certain regulatory, assignment, corporate and tax documentation each as deemed satisfactory by Ikänik, 5,000,000 Ikänik Shares shall be delivered ratably to the former shareholders of D9C;
- within 10 business days following the receipt of certain corporate documents, import registrations and certifications and receipt of seeds as deemed satisfactory by Ikänik, 3,000,000 Ikänik Shares shall be delivered ratably to the former shareholders of D9C; and
- within 10 business days following the delivery to Ikänik of a copy of validly issued seed and genetic registration certificates and a cultivation permit satisfactory by Ikänik, 2,000,000 Ikänik Shares shall be delivered ratably to the former shareholders of D9C.
If the satisfaction of each of the conditions above does not occur within 18 months from the effective date of the Agreement:
- each of the former shareholders of D9C will transfer the Ikänik Shares back to Ikänik.
About D9C
D9C is a cannabis license development company.
About Ikänik Farms
Ikänik Farms is creating a dynamic portfolio of cannabis brands, inspired by its passion for health and wellness, and action sports. Through the development of its LATAM operations, the Company aims to support global pharmaceutical demand for a variety of cannabis products. The Company's leadership brings decades of expertise in R&D, cultivation, retail, branding, and corporate finance with the ambition to build the most iconic "seed-to-sale", "MNO" Multi-National Operator. Ikänik Farms' operations are currently located in Colombia and California.
Forward-Looking Statements
This news release includes "forward-looking information" and "forward-looking statements" within the meaning of Canadian securities laws and United States securities laws (together, "forward-looking information). All information, other than statements of historical facts, included in this news release that address activities, events or developments that the Company expects or anticipates will or may occur in the future is forward-looking information. When used in this news release, words such as "will", "could", "plan", "estimate", "expect", "intend", "may", "potential", "believe", "should", and similar expressions, are forward-looking information, including, but not limited to, D9C's legal representative completing the seed importation and registration process, cultivation and the beginning of facility construction, the ability of Ikanik to complete a public listing on the Canadian Securities Exchange, statements under the heading "Transaction Highlights" and the ability of D9C to satisfy the conditions set out under the heading "Acquisition Summary".
Although the Company has attempted to identify important factors that could cause actual results, performance or achievements to differ materially from those contained in the forward-looking information, there can be other factors that cause results, performance or achievements not to be as anticipated, estimated or intended, including, but not limited to: D9C not being able to complete the importation and registration process, the beginning of facility construction being delayed, Ikanik not being able to complete its public listing on the Canadian Securities Exchange, the Company's expectations with respect to the acquisition of D9C (as set out under the heading "Transaction Highlights" not materializing, and D9C not being able to satisfy the conditions set out under the heading "Acquisition Summary".
There can be no assurance that such information will prove to be accurate or that management's expectations or estimates of future developments, circumstances, or results will materialize. As a result of these risks and uncertainties, the results or events predicted in the forward-looking information may differ materially from actual results or events.
Accordingly, readers should not place undue reliance on forward-looking information. The forward-looking information in this news release is made as of the date of this release. The Company disclaims any intention or obligation to update or revise such information, except as required by applicable law, and the Company does not assume any liability for disclosure relating to any other company mentioned herein.
On behalf of the Board of Directors of Ikänik Farms Inc.
SOURCE Ikanik Farms Inc.
For further information on Ikänik Farms, please contact: [email protected]
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