04:29:01 EDT Mon 21 Oct 2019
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ICC International Cannabis Corp
Symbol C : WRLD.U
Shares Issued 363,828,833
Close 2019-05-21 U$ 0.235
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ICC Int'l enters rights, offtake deal with Agraflora

2019-05-22 01:39 ET - News Release

Also News Release (C-AGRA) Agraflora Organics International Inc

Mr. David Shpilt of ICC International reports


ICC International Cannabis Corp. has entered into a commercial rights and offtake agreement with Agraflora Organics International Inc., whereby ICC may purchase up to 100 million grams of premium dried cannabis flower from Agraflora's Delta greenhouse complex cultivation operations over a five-year term.

ICC will leverage its advanced global downstream capabilities, including its European distribution footprint of 80,000 pharmacies and 300,000 retail end points to market premium cannabis under the company's diverse brands and banners.

Further to its downstream capabilities, International Cannabis is equipped with a trans-European wholesale distribution network, spanning 16 countries, including: Germany, United Kingdom, Ireland, Denmark, Italy, France, Singapore, Spain, Poland, the Netherlands and Greece.

Boasting 2.2 million square feet of grow space under glass, Agraflora and its joint venture partner have been collaborating with Health Canada since June, 2018, to prepare the large-scale, ready-made Delta greenhouse complex for licensing. As a result of this commercial rights and offtake agreement, Agraflora has committed to allocating 10 per cent of the Delta greenhouse complex's cumulative flower footprint to ICC.

Agraflora's Delta greenhouse complex is widely considered to be one of the most technically advanced and environmentally friendly greenhouse operations in the world, equipped with industry-leading cultivation infrastructure.

In anticipation of the company's inaugural offtake delivery from Agraflora, ICC is architecting its first purpose-built, European Union-GMP-(good manufacturing practice)-compliant cannabis processing, manufacturing and packaging facility. It is anticipated that ICC's finishing facility will function as a premier European cannabis-processing hub, through which:

  1. Cannabis produced/procured from ICC's contract farming and offtake agreements can be securely shipped to the finishing facility;
  2. Cannabis manufacturing and processing will then be initiated at ICC's finishing facility according to GMP-certified manufacturing specifications and SOPs;
  3. The now finished GMP-certified cannabis can be packaged for export and/or leveraged as GMP-compliant cannabis inputs to produce a portfolio of diverse, designer product formulations.

GMP-certified cannabis products are eligible for import/export to the European Union, thus achieving higher margins, all while removing barriers to entry for the penetration of high-value EU patient populations. Good manufacturing practice (GMP) certification is an internationally recognized system, mandated with ensuring all produced goods meet the highest consumer health and safety standard.

David Shpilt, chief executive officer of International Cannabis, stated: "ICC is pleased to formalize yet another material supply agreement, further crystallizing the company's access to a pipeline of premium dried cannabis flower. Agraflora and its JV partner are equipped with over 30 years of cultivation expertise, instilling us with ongoing confidence to consistently deliver a safe supply of medicine for our high-value patient populations.

"International Cannabis's geographic asset footprint, globally recognized production certification and planned finishing facility will provide the company with global trade route arbitrage advantages.

"This offtake agreement is strategically structured to leverage existing market maturity, all while capitalizing on emerging market opportunities of today and tomorrow. With this agreement, ICC will leverage the anticipated throughput and low cost of production from the Delta greenhouse complex to realize a significant source of high-quality dried flower."

Subject to the terms of the commercial rights and offtake agreement, International Cannabis may purchase up to 20,000 kilograms of dried cannabis per annum for a five-year term from Agraflora's large-scale Delta greenhouse complex, representing 100 million grams over the duration of the initial term.

The aforementioned commercial rights and offtake agreements are contingent on Agraflora's receiving its cultivation and sales licences from Health Canada for its Delta greenhouse complex operations.

A finder's fee is payable on this transaction.

About ICC International Cannabis Corp.

ICC International Cannabis, through its subsidiaries, has operating assets and is developing a world-class platform for cultivation, extraction, formulation and distribution across the globe in the United Kingdom, Denmark, Poland, Switzerland, Germany, Macedonia, Bulgaria, Serbia, Croatia, Greece, Italy, Portugal, Malta, Colombia, Argentina, Australia, South Africa and Lesotho.

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