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Medcolcanna Organics Inc. secures funding from Greenstein Capital Ltd.

Medcolcanna Organics Inc. secures funding from Greenstein Capital Ltd.
Medcolcanna Organics Inc. secures funding from Greenstein Capital Ltd.

Colombia-based integrated cannabis company, Medcolcanna Organics Inc. (MCCN) has reportedly announced that it has inked a distribution agreement with a private Maltese firm called Greenstein Capital Ltd. Reliable sources affirm that the agreement is inclusive of the distribution of active cannabinoid ingredients – a minimum of 1,000 kg per year, and will see MCCN products being commercialized in Europe.

As per sources familiar with the knowledge of the matter, the distribution agreement consists of a transfer of cannabinoid ingredients to Greenstein Trading Ltd. (GT) – a subsidiary of Greenstein Capital Ltd., on a COGS basis for bulk products and Active Pharmaceutical Ingredients (APIs), as well as a COGS plus 25% price, on all the finished goods. In addition, the agreement is inclusive of a profit-sharing mechanism which states that the final sale price, minus transfer price from MCCN to GT, is liable to generate profits that will be equally shared between the parties.

It has been reported that GC and MCCN have also committed to continue talks pertaining to a corporate transaction in the future.

According to reliable sources, the share subscription entails the share issuance at a value of CAD $0.08/share, for an overall amount of CAD $800,000, alongside a total issuance of 10,000,000 common shares in MCCN’s capital.

Felipe de la Vega, Chief Executive Officer, Medcolcanna, has been quoted to state that this deal has come to the fore at a time when MCCN has finalized its first stage toward becoming a global leader in the cannabis business via the development of art cultivation and extraction facilities. Greenstein’s experienced team comprising strong marketing expertise, traders, technical experts, and regulatory affairs are already on their way to setting up the type of distribution channels that will enable the MCCN brand to expand outside of LATAM and establish a strong footprint across Europe, he adds.

For the record, this is a non-brokered transaction and is subject to the final approval of the TSX Venture Exchange, which includes pricing terms as well as other material terms thereof.

Source Credits: https://www.globenewswire.com/news-release/2020/07/20/2064270/0/en/Medcolcanna-Organics-Inc-Announces-it-Has-Entered-Into-a-Distribution-Agreement-Has-Secured-Financing-With-Greenstein-Capital-Ltd.html

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