Avicanna Inc. (OTCQX:AVCNF) (TSX:AVCN) (FSE:0NN) sold its stake in Sativa Nativa S.A.S., which was the company’s secondary majority owned Colombian subsidiary.
The aggregate price paid by the purchaser for the company´s shares in Sativa Nativa was approximately CA$675,000 ($520,000) in addition to a potential premium of CA$130,000 subject to the accomplishment of specific short-term milestones. The transaction allows the company to eliminate redundancies, reduce its operational costs and generate efficiencies across its South American operations by focusing its supply chain efforts at its much larger and more operationally advanced majority owned subsidiary Santa Marta Golden Hemp (“SMGH”). The operations at SMGH have been the source of the company’s Aureus-branded commercial exports to 16 countries and include the cultivation, extraction and production of cannabinoid raw materials including active pharmaceutical ingredients and seeds. SMGH is also the source of the company’s cannabinoids for most of its cosmetic and pharmaceutical preparations.
