Mym Nutraceuticals Inc (OTCMKTS:MYMMF) announced recently that it has purchased more shares from Colombia Organica, therefore bringing its total stake in the company to 80%.
The announcement about MYM’s extra stake acquisition comes amid the rapid growth in the cannabis industry. Colombia Organica has three licenses so far for proactive cannabis cultivation, production of cannabis derivatives and cultivating non-psychoactive cannabis. The licenses also grant the company the capacity to export its cannabis products.
Colombia Organica has also applied for the certification of cannabis sees which if granted will allow their commercialization. The firm has a lease on a 36-acre piece of land located just 44 kilometers from Medellin. The particular piece of land is in an ideal location because the climate in the region ranges between 16 and 18 °C, which is ideal for cannabis growth.
Colombia Organica and MYM are developing a production facility which is located in Medellin, Colombia. The facility will be used for cannabis cultivation and processing. Colombia Organica is currently working towards developing and registering seeds strains with the Agricultural Institute of Colombia. MYM recently announced that it plans to raise its stake in Colombia Organica to 80%. It will reportedly spend $2.26 million to purchase the additional stake.
“After further review, we’ve decided to increase our stake in Colombia Organica under much more favourable terms,” stated MYM CEO Howard Steinberg.
Both MYM and Colombia are investing heavily in the South American region
The CEO also noted that Colombia Organica offers an opportunity for his company to expand its operations in South America, thus generating more value for shareholders. MYM also plans to hire Gabriel Ramirez and Daniel Alonso who happen to be executives in Colombia Organica. The two will work for MYM as territory managers who will manage the company’s operations in South America.
The additional stake that MYM will acquire in Colombia Organica will, therefore, allow the company to strengthen its reach in the South American market while also generating more value for investors. The two companies have already signed an investment agreement although the transaction is subject to due diligence by MYM and numerous regulatory approvals.