Ikänik Farms Inc. says it struck a deal that will make it the first legal cannabis company to import hemp and weed products inside Mexico.
On Monday, the international operator said it acquired Delta 9 Corporation Mexico (D9C), a cannabis company that has received permits from Mexican regulators to import cannabis and hemp seeds for cultivation.
Disclosure: Ikänik Farms is a Mugglehead advertiser
D9C is headquartered in Coyoacán, Mexico and the firm’s law team has received a special permit through the country’s legalized Amparo process, which grants them judicial permission to cultivate cannabis.
Mexico was set to be the first nation to legalize cannabis via a judicially mandated process by April 30, but the Covid-19 pandemic stalled the initiative. The Supreme Court of Mexico has extended the deadline for legalization to Dec. 15.
With its D9C acquisition, California-based Ikänik Farms will be the first operator to import, cultivate, and produce cannabis and hemp products under the agreement.
“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 one of one in Mexico,” CEO Brian Baca said in a statement.
The company said once D9C completes the import registration process it will begin shipping cannabis and hemp seeds from its Colombian operations and begin construction on a cultivation facility in Mexico.
The company intends to produce cannabis and hemp-derived CBD in Mexico for international markets.
“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,” said Borja Sanz de Madrid, president of Ikänik International.
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Last fall, Ikänik Farms targeted global expansion by acquiring Pideka SAS, a Colombian medical cannabis cultivator that came with a 1200-hectare land package.
The company developed an 80,000 square foot facility near the capital city of Bogotá to grow cost-effective, high-quality cannabis. Pideka was the first company inside Colombia to receive both Good Agricultural and Collection Practice for medicinal plants certification, as well as GMP-Pharma certification.
Baca told Mugglehead in an email the company is setting up deals to import its pharmaceutical-grade cannabis and medical CBD products inside the European Union and Latin American markets
“Using the early mover advantage, we will have international exposure, giving visibility to our branded products and will support an aggressive LATAM and E.U. market positioning,” he said.
Ikänik Farms will sell products under its family of brands and target a broader audience with pharmaceutical retail partners across Mexico, according to the press release.
The company said the D9C acquisition will also bolster its continued effort to be publicly listed on the Canadian Securities Exchange.
Under the terms of the deal, D9C shareholders agreed to transfer all outstanding shares to Ikänik in exchange for consideration of up to 10,000,000 common shares of Ikänik that will be issued at three separate dates subject to various conditions.
If the conditions aren’t met within 18 months from when the agreement was signed, the former D9C shareholders will transfer the Ikänik shares back to the company, it noted.
Cover image: The Mexico City Metropolitan Cathedral sits nearby the country’s supreme court, which ordered the legislative branch to approve legalizing recreational cannabis. Photo by Jared Gnam