AusCann has entered into an agreement with GrowForChile and Telor International Limited (Telor), in respect to the sale of the Company’s right, title and interest in its 50% owned Chilean joint venture, DayaCann SpA (DayaCann). Furthermore, the Agreement includes the transfer of the Company’s loan with DayaCann to GFC. AusCann will receive an upfront payment of US$200,000 and further payments that amount to a total consideration of US$1.5 million.
AusCann formed a 50:50 joint venture with Fundación Daya in Chile in November 2016 to cultivate and supply local and global markets with cost-effective medicinal cannabis. DayaCann today is the only commercial-scale medical cannabis cultivation company in Chile that obtained production licenses to complete multiple harvests yielding a total of over 1,000kg of dried cannabis flower. However, the Chilean government has constrained the supply of cannabis to Chilean patients and has not approved the export of medicinal cannabis out of Chile, which was previously anticipated.
AusCann has evolved its strategy to focus on differentiated, high value cannabinoid-based pharmaceuticals. As a result, the Chilean joint venture became a non-core activity.
Mr. Max Johnston, AusCann Non-Executive Chairman, said: “We thank our joint venture partner, Fundación Daya in Chile, and wish them well for the future. The difficulties posed by the Chilean regulators combined with the move by AusCann away from cultivation made the DayaCann joint venture not viable to continue. The focus of AusCann going forward is the development of differentiated medicines for the treatment of unmet medical needs.”
Mr. Nick Woolf, AusCann CEO, commented: “The DayaCann joint venture became a non-core activity for AusCann due to the restrictions imposed by the Chilean government on the use and export of medicinal cannabis from Chile. This Agreement strengthens AusCann's capital position and enables management to focus on the Company’s core strategy of building value through R&D and a differentiated portfolio of cannabinoid-based pharmaceuticals, the first being our unique hard-shell capsules already launched into the market.”
For more information:
AusCann
(08) 6305 0705
[email protected]
auscann.com.au