Khiron Initiates Construction of Cultivation and Processing Facility in Uruguay, Expanding Multi-Jurisdiction and Export Capacity
- Facility in Juan Lacaze includes GAP-compliant 8,000 m2 (86,111 sq.ft) cultivation area and a GMP-compliant 1,800 m2 (19,375 sq.ft) processing plant, with a production capacity of 17 tons per year
- Increases Khiron's total production capacity and strengthens ability to export and supply cannabis across the Mercosur trading bloc, with access to Brazil and Europe
- Medical cannabis markets in Brazil and Europe are expected to be respectively worth $144.3 billion USD and €115.7 Billion by 2028 (Source: Prohibition Partners)
- Construction scheduled for completion in mid Q3 2020
TORONTO, Sept. 4, 2019 /PRNewswire/ - Khiron Life Sciences Corp. ("Khiron" or the "Company") (TSXV: KHRN), (OTCQB: KHRNF), (Frankfurt: A2JMZC), a vertically integrated cannabis leader with core operations in Latin America, announced today that it has commenced construction of a 9,800 m2 (105,486 sq.ft) cultivation and processing facility in Juan Lacaze, Uruguay. With a production capacity of 17 tons per year, the Company's investment in this state-of-the-art facility represents a significant increase in Khiron's total production capacity, strengthening its ability to export and supply cannabis to key international markets, including Brazil and Europe. Construction is underway and is scheduled for completion in mid Q3 2020.
Located strategically within an hour's distance from the international airport and port, the facility will include 8,000 m2 of covered area for cultivation, where controlled conditions of irrigation, temperature, humidity and light will be implemented for optimum crop development. An 1,800 m2 processing plant will also be built on site for drying and processing crops, with pharmaceutical-grade design standards in place to ensure quality control across the analysis process. The cultivation area and processing plant will be built to meet the requirements of Good Agricultural Practices (GAP) and Good Manufacturing Practices (GMP), respectively, in keeping with Khiron's continued expertise and core commitment to regulatory and operational compliance.
Alvaro Torres, CEO and Director of Khiron Life Sciences, commented: "With construction of our facility in Juan Lacaze, we are actively executing on our strategy to build a dominant position in Latin America and further expand our global reach. Through its inclusion in the Mercosur trade bloc, Uruguay is poised to become a key source to supply the global medical cannabis industry. Our production in the country will target domestic use in Uruguay and export across one of the world's largest trading blocs, beginning with export to Brazil, home to 208 million people, and from there, we expect to move quickly across the bloc's trading countries in Latin America."
Uruguay was the first country globally to establish cannabis legislation. Building upon Khiron's previously announced acquisition of NettaGrowth International Inc. ("NettaGrowth") and its wholly-owned subsidiary Dormul S.A. ("Dormul"), which obtained the first licence in Uruguay to produce and export medical cannabis with THC for commercialization, the Company is now initiating construction of the cultivation and processing facility. Khiron has also begun pre-clinical studies in the country as part of an initiative co-sponsored by the government of Uruguay using the Company's strains. Identified as one of the most significant private-public medical cannabis studies underway in Latin America, the research program has received matching government funding for its medical innovation.
About Khiron Life Sciences Corp.
Khiron Life Sciences Corp. is positioned to be the dominant integrated cannabis company in Latin America. Khiron has core operations in Latin America and is fully licensed in Colombia for the cultivation, production, domestic distribution, and international export of both tetrahydrocannabinol (THC) and cannabidiol (CBD) medical cannabis. The company delivers best in class regulatory compliance, has the first approved set of CBD cosmetic products on shelf in Colombia, and is currently facilitating testing to meet and surpass all license requirements for commercial cannabis derived products.
With a focused regional strategy and patient oriented approach, the Company combines global scientific expertise, agricultural advantages, branded product market entrance experience and education to drive prescription and brand loyalty to address priority medical conditions such as chronic pain, epilepsy, depression and anxiety in the Latin American market of over 620 million people. The Company is led by Co-founder and Chief Executive Officer, Alvaro Torres, together with an experienced executive team, and a knowledgeable Board of Directors that includes former President of Mexico, Vicente Fox.
This press release may contain certain "forward-looking information" and "forward-looking statements" within the meaning of applicable securities legislation. All information contained herein that is not historical in nature may constitute forward-looking information. Khiron undertakes no obligation to comment analyses, expectations or statements made by third-parties in respect of Khiron, its securities, or financial or operating results (as applicable). Although Khiron believes that the expectations reflected in forward-looking statements in this press release are reasonable, such forward-looking statement has been based on expectations, factors and assumptions concerning future events which may prove to be inaccurate and are subject to numerous risks and uncertainties, certain of which are beyond Khiron's control, including the risk factors discussed in Khiron's Annual Information Form which is available on Khiron's SEDAR profile at www.sedar.com. The forward-looking information contained in this press release is expressly qualified by this cautionary statement and are made as of the date hereof. Khiron disclaims any intention and has no obligation or responsibility, except as required by law, to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.
United States Disclaimer
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons (as such term is defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available
Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this press release.
Further information in respect of the Company can be found at www.khiron.ca.
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SOURCE Khiron Life Sciences Corp.
Released September 4, 2019