February 28, 2019 MJ Shareholders
February 28th, 2019
Exclusive, News, Top News
On Valentine’s Day, Vancouver-based Next Green Wave Holdings Inc. (CSE: NGW, OTCQB: NXGWF) announced a strategic investment in Organic Medical Growth OMG3 Inc, a Canadian company operating a wholly-owned subsidiary in Colombia focused on producing and commercializing CBD products derived from organic medicinal cannabis and industrial hemp. OMG’s subsidiary, Proymed S.A.S., is on track to obtain licenses to produce THC as well, and finalizing international distribution agreements.
With a population of 600 million and high rates of existing consumption, coupled with rapidly-liberalizing attitudes toward cannabis and regulations increasingly favourable to its use, production, and export, Latin America is shaping up as the next big cannabis market.
Colombia legalized medical marijuana in 2016, recently passed a law designed to actively promote its use, and the country currently has over 3 million patients using cannabis and derivative products to treat symptoms ranging from chronic pain to the widespread post-traumatic stress disorder resulting from the recently-ended civil war.
Recognizing the immense revenue potential cannabis production and export offers, the government has worked with the private industry to create a cultivation framework designed to produce over 40 tons of cannabis annually, beginning this year, and is expected to become a leader in low-cost, high-quality cannabis for medical and recreational purposes. Located on the equator, Colombia’s outdoor cultivation isn’t dependent on the seasons, boasting an average 12 hours of daily sunshine, along with fertile soil and a highly-experienced agrarian workforce, meaning its cultivation is not only more consistent, but also very cost effective.
Agreement Expands Production, Distribution Capacity
Subject to completion of a definitive agreement and applicable regulatory approvals, including the approval of the Canadian Securities Exchange, Next Green Wave will have access to the emerging Colombian cannabis market. In return, the company will collaborate with and provide commercial strategic support to OMG, through Polymed, in the planning and design of infrastructure necessary for its outdoor and indoor facilities, and the adoption of nursery, cultivation, and manufacturing techniques enabling OMG to produce large-scale, high-quality cannabinoid oil compliant to GMP standards. It also allows the licensing of Next Green Wave’s medicinal consumer goods and brands across OMG’s entire distribution network.
Jorge Diaz, CEO of OMG, said, “We are very pleased to further position ourselves in the Colombian cannabis industry. The country has some of the best cultivation environments in the world and with the current legal framework, Colombia could soon become the world’s leader in both production and export of medicinal cannabis. OMG’s strategic alliance with Next Green Wave will act as a springboard to kickstart our operations both in Colombia and internationally. The expertise, know-how, and product lines Next Green Wave have developed will allow OMG to expedite its go to market strategy and we look forward to fully use the synergy of our teams as we plan to go public.”
OMG’s unique offering includes an exclusive off-take agreement, through Proymed, to purchase the entire cannabis production of the Asomiravalle Norte Association, an association of 28 producers located in the state of Valle Del Cauca, whose activities span across 100 hectares of land with the option to expand the production to 1000 hectares over the next decade. A distribution agreement with SALUTTI S.A.S., which owns 100% of ORTIX S.A.S., gives OMG exclusive distribution rights to its network of over 7000 Colombian pharmacies. OMG is also developing its distribution channels to export cannabis products in established markets like the US, Canada, and Europe, as well as Latin America’s massive emerging market.
Commenting on the agreement, Leigh Hughes, CEO of Next Green Wave said, “We are excited to become a strategic partner of OMG as they position themselves to be a leader in the production and distribution of medical cannabis in Colombia. (…) it is clear that Colombia has brilliant potential for a low-cost, high-margin business model. Our partnership will benefit both parties by accelerating OMG to become a leader in the Colombian market whilst giving Next Green Wave future licensing opportunities and distribution beyond the California market.”
The deal follows closely on the heels of several important developments that suggest a lucrative year ahead for Next Green Wave. Investors looking to benefit not only from its operations in California, the largest cannabis market in the world, but also from its early footprint in the emerging Latin American market, should definitely keep an eye on this.
Watch this page for further developments, or visit https://nextgreenwave.com/
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About Tony Deyes
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