This year has seen Kalytera Therapeutics (OTCMKTS:KALTF) engaged in numerous deals aimed at expanding the company’s scope. The company has set clear objectives concerning what it expects to achieve this year. One of these objectives is to be a fully vertically integrated company.
Acquisition of a CBD extraction firm
In late June 2019, Kalytera signed a letter of intent (LOI) to buy into Oregon 01. This is a cannabidiol (CBD) extraction company based in Oregon. Operating under Clean Bi Design as its business name, the firm has the capability to produce around 600 kg of CBD isolate for a single shift every month.
The Clean Bi Design facility is duly certified by the FDA and GMP and has extraction equipment which is sure to optimize the extraction activity. Notably, the equipment can perform extraction, isolation and distillation all at the same time. Kalytera expects to begin operation at the facility by the fourth quarter 2019.
Clean Bi Design will cost Kalytera $3.5 million which will give the company a 51% shareholding. According to the LOI, the deal should be closed by early October.
A step closer to a leadership position
The cannabis industry is just taking off, especially in the US. But companies have to deal with complicated legal procedures just to hit the ground running. This is due to the absence of a clear legal environment regarding cannabis in the US.
Despite the complexities, Kalytera is determined to take pole position in the industry. As per the company’s CEO and President, Robert Farrell, the new acquisition should help Kalytera to cement its dominance of the interface between consumer and medical CBD markets.
Kalytera intends to be a vertically integrated company and Clean Bi Design is the right move toward that goal.
For starters, the company has interests in both medical and consumer markets in the cannabis industry. Just last month, KALTF revealed positive progress in the development of a CBD molecule which expedites pain relief.
As per the company, this molecule, dubbed KAL-1816, can ably shut down the transmission of pain in conditions such as colitis, sciatica and arthritis.