CORONA, Calif. – Ikänik Farms, Inc. (the “Company” or “Ikänik”) is pleased to announce it has purchased all issued and outstanding shares of Delta 9 Corporation Mexico S.A. de C.V (“D9C”), based in Coyoacán, Mexico. D9C’s legal representative is permitted to import and register cannabis seeds for cultivation through the legalized Amparo process. The Company intends to contract-produce for national and international pharmaceutical cannabis and hemp-derived CBD clients.
“I am very excited to welcome D9C and its team of scientific, legal, and regulatory specialists who have been exemplary leaders, shepherding the cannabis legalization process, and providing Ikänik the opportunity to be a 1 of 1 in Mexico”, said Brian Baca, CEO of Ikänik Farms, Inc.
D9C is the exclusive Amparo representative to import, cultivate, and produce products derived from cannabis and hemp for national and international markets.
Borja Sanz de Madrid, President of Ikänik International, Inc. further emphasized, “We are proud to participate in this historic moment for Mexico. It will be our honor bringing pharmaceutical cannabis Hecho en Mexico para el mundo.”
Upon D9C’s legal representative completing the seed importation and registration process, cultivation and facility construction will commence, providing employment opportunities and social support in the communities it serves.
This acquisition marks a significant milestone for the Company, as it continues to grow its multi-national operating presence and prepares to complete a public listing on the Canadian Securities Exchange.
Transaction Highlights
First-Mover Advantage: D9C will provide Ikänik unparalleled speed and access to the Mexican and international marketplace. It will be the first to import certified and licensed seeds for genetic registration from Ikänik’s Colombian GACP and GMP-PHARMA certified “Casa Flores” location, paving the way for cultivation activities and building a state-of-the-art complex for cannabis production.
Diversified Product Portfolio for Domestic Sales: Ikänik Farms, will sell products under its family of brands, providing a broader target audience for pharmaceutical retail partners across Mexico.
Stable Supply for International Supply Agreements: D9C provides Ikänik the ability to continue effectively scale and fill its growing international supply agreements for pharmaceutical grade Cannabis and Hemp derived CBD, pending receipt of permits.
Acquisition Summary
Under the Agreement between Ikänik and D9C (the “Agreement”), the shareholders of D9C agreed to transfer to Ikänik all outstanding shares of D9C (the “D9C Shares”) in exchange for consideration of up to 10,000,000 common shares of Ikänik (the “Ikänik Shares”). The Ikänik Shares are to be transferred in the amounts and subject to the completion of the conditions set out below:
within 10 business days following the receipt of certain regulatory, assignment, corporate and tax documentation each as deemed satisfactory by Ikänik, 5,000,000 Ikänik Shares shall be delivered ratably to the former shareholders of D9C;
within 10 business days following the receipt of certain corporate documents, import registrations and certifications and receipt of seeds as deemed satisfactory by Ikänik, 3,000,000 Ikänik Shares shall be delivered ratably to the former shareholders of D9C; and
within 10 business days following the delivery to Ikänik of a copy of validly issued seed and genetic registration certificates and a cultivation permit satisfactory by Ikänik, 2,000,000 Ikänik Shares shall be delivered ratably to the former shareholders of D9C.
If the satisfaction of each of the conditions above does not occur within 18 months from the effective date of the Agreement:
each of the former shareholders of D9C will transfer the Ikänik Shares back to Ikänik.
About D9C
D9C is a cannabis license development company.
About Ikänik Farms
Ikänik Farms is creating a dynamic portfolio of cannabis brands, inspired by its passion for health and wellness, and action sports. Through the development of its LATAM operations, the Company aims to support global pharmaceutical demand for a variety of cannabis products. The Company’s leadership brings decades of expertise in R&D, cultivation, retail, branding, and corporate finance with the ambition to build the most iconic “seed-to-sale”, “MNO” Multi-National Operator. Ikänik Farms’ operations are currently located in Colombia and California.
