Khiron Life Sciences, an integrated medical cannabis company with core operations in Colombia, has agreed to buy Uruguay’s NettaGrowth International in a deal valued at 13.7 million Canadian dollars ($10.3 million).
NettaGrowth is in the process of completing its acquisition of Dormul, which secured a cannabis cultivation license in Uruguay with capacity up to 120 metric tons (132.3 tons), or 170,000 plants.
“Khiron has the same view of the Latin America cannabis business as we do,” Dormul founder Marco Algorta told Marijuana Business Daily. “They are looking for the same markets.”
The Khiron move marks the second phase of investment in Dormul, Algorta confirmed.
Dormul has been looking for a total of CA$53 million to finance its growing and extraction plans, and an initial CA$25 million was satisfied by Canadian investment in NettaGrowth, Dormul’s parent company.
The acquisition by Khiron will eventually cover the remaining investment, Algorta said.
Khiron operates in Mexico as well as Colombia, and the Uruguay move will expand its presence in South America, the company said.
Former Mexican President Vicente Fox serves on Khiron’s board of directors.
Khiron follows fellow Canadian company Aurora Cannabis into Uruguay, the first country in the world to legalize recreational marijuana.
Aurora bought ICC Labs in September 2018 for CA$290 million.