ICC International Cannabis Corp (CSE:WRLD.U) (OTCMKTS:WLDCF) announced Monday that has secured an exclusive European licence to its novel cannabinoid extraction system.
The Vancouver-based cannabis company obtained the licence for the Affinity Alpha Unit, which uses a two-phase process to enable the mass production of THC, CBD, CBG and terpene extracts at ten times the throughput of traditional extraction technologies.
Shares of ICC International Cannabis were up 5% on Monday, at C$0.21 on the Canadian Securities Exchange.
READ: ICC International Cannabis signs major deal to purchase 100 million grams of dried cannabis flower for European distribution
Developed by Atom Energy Inc and Sixth Wave Innovations Inc, International Cannabis is planning to integrate the Affinity Unit into its vertically-operated cannabis asset portfolio of 20 countries.
International Cannabis will also leverage the system to expedite post-harvest production of finished goods from its current extraction-ready CBD inventories in Germany, Switzerland, Serbia and Croatia.
“The integration of the Affinity Unit across ICC’s global operating units will optimize ICC’s multi-pronged CBD strategy, thereby maximizing rents while cornering high growth consumer segments,” said David Shpilt, CEO of International Cannabis in a statement.
The proprietary process will allow International Cannabis to bring its product formulations to market at a faster pace, further actualizing its first-mover reputation across the EU, according to Shplit.
"Access to the exclusive master license arms International Cannabis with the capability to monetize each and every deployment of the Affinity Unit across the EU.”
International Cannabis has also been granted the first-in-line option to acquire the exclusive master licencing rights to the Affinity Unit, allowing the company a direct use licence within Europe, as well as the authority to sub-licence and collect a royalty from potential sublicenses on the continent. The company also has additional licence rights to India and Greece.
As part of the agreement, International Cannabis will pay C$3.5 million in common shares in the capital of the company upon the exercise of the right of first refusal option and concurrent master licencing agreement. It has also agreed to invest C$1.5 million in Atom at a price of $0.75 per share.
--Updates share price--
Contact Angela at [email protected]
Follow her on Twitter @AHarmantas