MYM Nutraceuticals (CSE: MYM) (OTCBB: MYMMF) has boosted its stake in Colombia Organica, a Colombia-based manufacturer of pharmaceutical products, medicinal chemical substances and botanical products.
Why MYM Betting on Colombia Organica
Colombia Organica currently holds three licenses: production of cannabis derivatives; cultivation of psychoactive cannabis; and cultivation of non-psychoactive cannabis. Licenses also include the capacity to export.
Colombia Organica filed an application to certify cannabis seeds for commercialization. In addition, it holds a lease for a 36-acre property located 44 kms from Medellin, Colombia. The region’s climate is conducive for growing cannabis with an average temperature of 16-18 °C, and an elevation of 2,475 meters above sea-level. They have secured an option to buy the property.
Further, MYM and Colombia Organica are building a production facility near Medellin for the cultivation and processing of cannabis and cannabis products.
Meanwhile, Colombia Organica is developing and registering seed strains with the Colombian Agricultural Institute.
MYM will acquire eighty 80% of Colombia Organica from its existing shareholders for consideration of cash, equity and loans to the company for up to $2.26 million.
As part of the deal, MYM will name Colombia Organica principals Daniel Alonso and Gabriel Ramirez as territory managers for South American operations.
Howard Steinberg, the CEO of MYM, states that, after further review, they have decided to increase their ownership in Colombia Organica under much more favorable terms.
“Colombia presents an exciting opportunity for MYM to expand its cultivation operations into South America, bringing with it increased value to our shareholders. The addition of Daniel and Gabriel to our team will provide the company with boots on the ground for all current and future projects in South America,” Steinberg notes.
The MYM’s investment agreement is subject to all required approvals and MYM’s due diligence.