BOGOTÁ, Colombia, Sept. 10, 2020 (GLOBE NEWSWIRE) -- Medcolcanna Organics Inc. (TSXV: MCCN), through its wholly-owned subsidiary Medcolcanna SAS (“Medcolcanna”, “MCCN” or the “Company”), a leading Colombian integrated cannabis company, is pleased to announce that it has entered into a joint venture agreement for the development and commercialization of cannabis based pharmaceutical products with Grupo Curativa SAS (“Curativa”), an interdisciplinary group of physicians and scientists, internationally recognized for their development and commercialization of various carefully researched products with varying ratios of THC, CBD and other cannabinoids across human and veterinary populations. These formulas have been tested for numerous clinical conditions in over 4,000 patients over the past six years in Colombia, as well as internationally.
MCCN’s proprietary formulations are expected to be distributed through Curativa’s network of doctors to benefit the growing patient base they have created since 2014. MCCN’s product portfolio of 12 base formulations are expected to be augmented by Curativa’s recognized 17 formulations allowing MCCN to offer science-backed products to its own network of patient clinics in Colombia as well as its other medical cannabis distribution channels around the world. Along with its 17 formulations for humans, Curativa has also developed 7 formulations for pets. MCCN will collaborate with the Curativa technical teams for reformulations and the development of new formulations.
The joint venture expects to launch the first products in October 2020 and at such time MCCN will be producing at a commercial level. The products will be sold as magistral preparations in Colombia and MCCN will start providing its proprietary formulations to the existing network of 4,000 recurring patients under treatment by Curativa thus providing MCCN entry to an existing and rapidly growing client base.
Average final approximate price for each product sold is estimated to be between $50 to $60 USD ($66 to $79 CAD), with total sales having the estimated potential to reach ~ 2 Million USD (2.645 M CAD) in the first full fiscal year of operation (2021). Due to the supply limitation that Curativa had, they were unable to increase the patients that they service. MCCN and Curativa are optimistic of the growth potential to satisfy a larger patient base now that supply will not be limited to the patients that can be serviced. MCCN and Curativa are also pleased to announce that they will be able to make a positive impact on patients that were not serviced in the past, and hope that they can make a positive impact on their lives. The agreement establishes cost-plus wholesale pricing, protects innovation and intellectual property with royalty payments and sets both minimum retail pricing and suggested retail pricing. The agreement also allows for up to 10% of certain retail margins to go to a foundation for the purpose of serving low-income communities.
This joint venture agreement between MCCN and Curativa is expected to leverage MCCN’s wholly-owned subsidiary Extralia Labs’ extraction capacity to manufacture all of Curativa’s products to augment its capacity to reach its fast-growing patient network.
The joint venture draws on Curativa’s extensive scientific and medical experience to support the development of educational programs that will expand the knowledge base about the cannabis industry and the specific nature of the benefit of some products to affect certain conditions.
The partnership with Curativa underscores the group’s confidence in the MCCN team and its focus on establishing a best-in-class manufacturing operation with the goal of becoming a leading extraction and high-quality product formulation center in Latin America and an international supplier of medicinal-grade cannabis oil extracts, active pharmaceutical ingredients (API) and related products.
Management Commentary
Felipe de la Vega, CEO of Medcolcanna, commented: "This strategic alliance comes at a time when the Company has finalized its first stage in becoming a global leader in the cannabis industry by developing state of the art cultivation and extraction facilities, with capacity to reach local and global markets, as well partnering with companies like Curativa. Since its inception, MCCN has been dedicated to developing and commercializing formulations that can provide relief for patients and the similar thinking of the Curativa team along with the depth of knowledge gathered in the group’s real-world database of over 4,000 patients will accelerate MCCN’s own knowledge base and credibility in the human and veterinary wellness markets.”
Chief Corporate Development Officer, Daniel Herrera, stated: “We are pleased to announce this partnership as our two firms share a common vision of providing accessible purpose-derived cannabis medicines to patients. MCCN will be able to leverage its distribution channels to make this vision a global one as we believe the Curativa portfolio complements MCCN’s product offering perfectly and will truly differentiate MCCN from other global cannabis product producers.”
Dr. Paola Pineda, Founder of Grupo Curativa commented: “Our group is so very pleased with this alliance with Medcolcanna, as we share their philosophy of research-based development of cannabis medicines and in their ability to manufacture products for our patients of the utmost quality standards. We look forward to the first line of products to reach a broader market this October and to grow our reach globally.”
ABOUT MEDCOLCANNA
MCCN is a Canadian vertically integrated cannabis company with fully licensed operations based in Colombia, approximately 30 minutes from the capital Bogota. The organization believes in the healing power of cannabis and is driven to connect people with accessible products that evolved from traditional preparations into scientifically studied formulas to impart consistency of delivery and maximize effect to consumers.
The global outlook of the experienced management team and board of directors means that the Company is leveraging the low-cost structure available in Colombia and developing its footprint in high value markets. MCCN has moved quickly in its short history to try to become a global leader in innovative cannabis product exports to the world.
The firm’s business consists of Cultivation, Extraction and Manufacturing, Product Development, Intellectual Property Management, sales and distribution. Each element of the value chain is modeled to generate revenue for the company and value for its shareholders.
ABOUT CURATIVA
Grupo Curativa is an alliance of people, physicians, researchers and organizations dedicated to the social and scientific development of the medicinal and industrial uses of cannabis in Colombia. The organization uses high quality genetic material that is stabilized and carefully selected for commercial cultivation. Through its proprietary processes, Curativa has developed 17 magistral formulations for humans and 7 formulations for pets, with varying cannabinoid potencies and ratios and studied these in a variety of conditions in humans and animal populations. The basis of its success is the clinical database comprising over 4,000 patients that are under the group’s clinical follow up. This has been achieved through development of a strong global network of physicians, academic and scientific institutions.
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Additional information about Medcolcanna can be found on its web site at www.medcolcanna.com
Medcolcanna Investor Relations Contact:
Chris Reid, CFO
Carrera 49b # 93-62
Bogotá, Colombia
Phone: +571 642-9113
Email: info@medcolcanna.com
Forward-Looking Statements
This news release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements”) within the meaning of the applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to general business, economic, competitive, political and social uncertainties; and the delay or failure to receive board, shareholder or regulatory approvals for any proposed transaction, including those discussed herein. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release.
In addition, certain forward looking statements that relate to financial performance of the Company, such as revenue projections and pricing predictions, may be considered to be future oriented financial information (“FOFI”) within the meaning of applicable securities laws. The FOFI has been prepared by management to provide an outlook of the Company’s activities and results and may not be appropriate for other purposes. The FOFI has been prepared based on a number of assumptions. The actual results of operations of the Company and the resulting financial results may vary from the amounts set forth herein, and such variation may be material. Management believes that the FOFI has been prepared on a reasonable basis, reflecting management’s best estimates and judgments. Any FOFI in this press release is made as of the date specified above and is based upon the information available to management as of that date. FOFI contained in this press release is subject to the same assumptions, risk factors, limitations and qualifications set forth from time to time in the Company’s publicly available filings on www.sedar.com, including, but not limited to, the Management’s Discussion and Analysis filed by the Company from time to time, and relating to other forward-looking statements.
Medcolcanna assumes no obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, or FOFI, should they change, except as otherwise required by law.
Neither the TSX Venture Exchange Inc. nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.