ICC International Cannabis Corp. (KNHBF) to Acquire Over 155 Metric Tonnes of Processed, Extraction-Ready Hemp

ICC International Cannabis Corp. (CSE:WRLD.U)(8K51.F)(KNHBF) (“ICC” or “International Cannabis” or the “Company”) is pleased to announce it has entered into an agreement to purchase 155 metric tonnes of processed industrial hemp from Eviana Health Corporation (“Eviana”) (CSE:EHC). International Cannabis has also simultaneously entered into a definitive agreement to acquire 100 per-cent of Future Hemp Corp. (“Future Hemp”), which holds an exclusive supply agreement for the delivery of 400 metric tonnes of certified organic hemp from a licensed Croatian producer (the “Future Hemp Agreement”).

This acquisition closes the loop for ICC, the Company now boasts: Local presence in 13 European countries via licensing or off-take agreements, supply on hand of product ready for sale starting in Q2 2019, an experienced operational team via the 49.9 acquisition of Wayland’s assets, including the ability to formulate and produce various product lines, soon to be announced world class brands, 39,000 retail outlets for distribution and to top it all off, Europe’s first dedicated insurance program for medical cannabis patients.  This virtuous circle from local production, to remarkable brands and to patient support is believed to be unparalleled in the European market today.

The 155 metric tonnes of processed, extraction-ready hemp will be transported to Eviana’s existing Serbian facilities for immediate extraction in the coming days. The Companies estimate that by utilizing new extraction technology purchased by Eviana and integrated with their existing extraction equipment, the 155 metric tonnes of high-quality, organic cannabidiol (“CBD”) oils within 200 days.

Pursuant to the Future Hemp Agreement, the harvest of 400 tonnes of certified organic hemp is expected to take place in September 2019. Upon completion of the harvest, it is intended that the product will be sorted, processed and then transported for end extraction and distribution.

The immediate addition of already processed hemp which can be readily converted into high-quality, organic CBD oils allows the Company to fulfill its growing pipeline of purchase orders in an expedited fashion.

International Cannabis plans to leverage its developing portfolio of brands as well as its robust distribution network of over 39,000 European pharmacies to maximize margins and profitability by marketing and selling CBD products derived from its Serbian and Croatian industrial stockpiles.

Distribution of the Company’s Serbian and Croatian CBD-derived products will signal the launch of International Cannabis’ dedicated European sales campaign (see International Cannabis news release dated November 7, 2018). Upon completing a comprehensive analysis of European market conditions, the Company chose to initiate a committed European marketing and sales operation, with the objective of augmenting the unsolicited, inbound demand received to date. The European Union (“EU”) has over 500 million potential consumers, affording the Company a unique opportunity to service this high-growth marketplace.

Eugene Beukman, Chief Executive Officer and a Director of International Cannabis, stated: “These strategic acquisitions crystallize the Company’s ability to consistently supply our pan-European distribution network with a suite of organic CBD products. The now secured hemp inventories equip International Cannabis with the ability to deliver product to our distribution network starting in Q2 2019.

With ample stockpiles of processed hemp already in hand, this unique marriage with ICC’s distribution assets creates a truly synergistic union for shareholders of both Companies, which we are tremendously pleased to have architected to begin 2019.

This grants the Company additional ability to post significant operating numbers in 2019 and secure its first-mover advantage in what is probably the world’s largest and most important unified market for CBD products. By combining a material stockpile of already processed hemp with a steady pipeline of organic hemp available for harvest, ICC is fully equipped to execute upon its 2019 and 2020 purchase order obligations.

Organic CBD isolate is currently trading within the European Union at 12,000 Euro equivalent per kilogram, translating to hundreds of millions of dollars of realizable revenues to ICC.  By further formulating and branding into a market starved for product, the Company could geometrically multiply this figure.”