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SOFIA (Bulgaria), December 21 (SeeNews) - ICC International Cannabis Corp said on Friday that is has entered into a definitive agreement to acquire 100% in Balkan Cannabis Corp., which controls medical cannabis cultivation and extraction licences in Macedonia, as well as medical cannabis and hemp cultivation licences in Bulgaria.
"International Cannabis will leverage Balkan Cannabis’ extensive Eastern Europe network to target the second wave of European cannabis legalisation," the company said in a statement.
Under the terms of the agreement, ICC will issue 61,000,000 shares, it said.
Upon closing, Balkan Cannabis Corp will transfer ownership of its proprietary license portfolio and operational assets to ICC.
Balkan Cannabis has a 67%-owned subsidiary in Macedonia, which has been granted an exclusive agreement with an existing licenced facility, located on a 30-hectare land parcel in Valandovo. The subsidiary also holds the only extraction licence in Macedonia and is in the process of building out the country’s first dedicated industrial extraction facility.
The Macedonian pharmaceutical market is valued at over $165 million (144 million euro) per year, according to data from the statement.
Balkan Cannabis also owns 50% in a Bulgarian company, which holds licences for production, manufacturing and export of both hemp and medical cannabis. The Bulgarian company owns a 15,000-hectare land plot, with a two-year option to acquire an additional 15,000 hectares.
"International Cannabis plans to optimise and further expand Balkan Cannabis’ operations to become a leading pan-European exporter of medical cannabis and hemp products, as well as a establish itself continental producer to meet growing domestic demand," the company said.
ICC's primary countries for continued development include Macedonia, Bulgaria, Serbia, Montenegro, Poland, Portugal, Greece and Denmark.
The financing plans for ICC's Bulgarian and Macedonian medical cannabis and hemp operations are expected to be announced in January 2019.
($ = 0.8755 euro)