ICC International Cannabis Corp (CSE:WRLD.U) (OTCMKTS:WLDCF) told investors Tuesday that it has at last struck a definitive agreement to acquire 49.9% of Wayland Group Corp’s (CSE:WAYL) (OTCQB:MRRCF) international assets and license portfolio.
As part of the transaction, Wayland will enter into a three-year supply agreement with ICC that will supply ICC with 10,000 kg annually of dried cannabis flower grown at Wayland’s Langton, Ontario production facility.
The cannabis will be distributed across medical cannabis markets in Europe and is expected to pay ICC more than eight euros per gram.
Under the deal, International Cannabis will issue Wayland 300 million shares in the capital of ICC.
Before the deal closes, Wayland’s international asset and license portfolio will be reorganized into Wayland International, a subsidiary, which will be jointly owned and operated by ICC and Wayland. As part of the terms, Wayland will keep the right to appoint the board of directors and management and Matthew McLeod, Wayland's general counsel, has been tapped as the subsidiary's president.
The two companies expect the deal will drive revenues higher as they look to take advantage of economies of scale to improve production, distribution and branding campaigns and enter new cannabis and CBD markets.
“This is a landmark acquisition for International Cannabis. ... Together, ICC and Wayland boast operations in 18 distinct geographies, all with a central function to supply high-quality cannabis to the global market,” said Davis Shpilt, CEO of ICC in a statement.
Ben Ward, CEO of Wayland, is just as bullish on the tie-up.
"The proposed transaction with ICC will help Wayland to execute on the vision and platform established over the past two-and-a-half years to bring medical cannabis to evolving global markets," Ward said in a statement.
The terms of the agreement are consistent with the letter of intent, which first laid out the deal’s terms and was released on January 15.
ICC International is developing an international platform for cannabis cultivation, extraction, formulation and distribution, with operations in the UK, Denmark, Poland, Switzerland, Germany, Macedonia, Bulgaria, Serbia, Croatia, Greece, Italy, Portugal, Malta, Colombia, Argentina, Australia, South Africa and Lesotho.
ICC International Cannabis shares closed up 7.8% to hit C$0.345 on Monday.
Contact Ellen Kelleher at [email protected]
-- This story is updated to add comments from Wayland Group --