ICC Labs Inc. is investing in privately held Spanish medical cannabis company Global Group Kalapa SL as part of efforts to expand into Europe.
ICC Labs, a marijuana producer based in Uruguay and listed in Toronto, plans to acquire an initial 25% equity stake at an agreed upon valuation for Kalapa of €3.50 million to be paid via a combination of cash, pure cannabidiol produced by ICC Labs and common shares of ICC Labs valued at C$1.40 per share.
In addition, ICC Labs will also have the option to acquire the remaining 75% of Kalapa at the same valuation before end-2018 in a combination of cash and securities of ICC Labs.
The investment's closing is subject to TSX Venture Exchange approval and other closing conditions, including due diligence.
Barcelona-based Kalapa owns KSK Labs SL, whose cannabidiol products are legally sold throughout Western Europe, including France, Germany, Italy, Spain and the U.K., and is planning to expand in Greece, Poland and Portugal. It also owns 100% of Kalapa Clinic S.L., an innovative medical consultancy in Europe for alternative treatment with cannabinoids.
ICC said the transaction allows the company to "get a strong foothold into the European markets."