Following Wayland Group Inc’s (CSE: WAYL) recent bought deal financing, the company announced its first foray into the South American market Tuesday. Wayland will acquire 100% of the outstanding shares of Colma Pharmaceutical SAS, a licensed THC-cannabis producer based in Colombia.
Wayland will pay for the company in shares – 11 million common shares at CAD $2.00 per share. After the acquisition, Wayland will be able to cultivate THC cannabis year-round in its Colombian outdoor facilities.
The company is joining the top brass of cannabis companies in North America looking to expand their reach as cannabis laws change globally.
Outdoor cultivation in Colombia
Indeed, the company will gain 415,000 square feet (38,554 square meters) of greenhouse facilities for outdoor cannabis flower production. Furthermore, the company reported the added facilities should provide two full harvests per year in optimal conditions.
They plan to extract the resulting crude cannabis in Colombia and export it for distillation in Wayland’s German facilities.
Wayland is EU-GMP production-standards approved for Canadian production. And, the company also expects to achieve that status in its German operations.
The company’s CEO, Ben Ward, commented on the acquisition, “we will be establishing a robust outdoor flowering operation as a source of products to be manufactured for global distribution from Ebersbach, Germany. We continue to move aggressively in the international market, creating a global presence, built on a rational business platform of geographic cost centers.”
Commercial quantities of CBG and CBN
In addition to growing its global footprint, the company aims to increase its reliable supply of two less well-known cannabinoids. Ward continued, “our move to outdoor cultivation in Colombia is the first step in creating a reliable and consistent mass supply of cannabinoid isolates for the global market, including THC and CBD, and importantly commercial quantities of lesser-known CBG and CBN.”
THC, CBD, CBN, CBC, CBG, and approximately 80 additional chemicals are all cannabinoids from the cannabis plant. Cannabinoids cause the therapeutic and psychotropic effects of pot consumption.
Indeed, CBN (cannabinol) has psychoactive properties, but only roughly 10% the strength of THC. The company did not make its plans for CBN public.
Glaucoma, antibiotic, and platelet treatments
CBG (Cannabigerol), on the other hand, is a non-psychoactive cannabinoid. Research shows pain-relieving and inflammation-reducing results when ingested. CBG can also reduce intraocular pressure, which researchers and clinicians associate with glaucoma. Moreover, CBG has antibiotic properties and may inhibit platelet aggregation. The latter could act to slow blood clotting rates.
Wayland has the cash to build out
The announcement comes two weeks after Wayland Group announced a $50 million Bought Deal Financing. The underwriters of that deal, Canaccord Genuity, agreed to purchase 30,350,000 units of Wayland at $1.65 per Unit, totaling $50,077,500 gross proceeds.
Wayland Group’s base is in Burlington, Ontario, Canada and Munich, Germany. The company currently has production facilities in Langton, Ontario. The focus of their Canadian and German facilities is on medicinal cannabis cultivation, extraction, formulation and distribution.