Toronto-based medical cannabis company Khiron Life Sciences Corp. will acquire Colombia-based Latin American Institute of Neurology and the Nervous System.

The institute, or ILANS, is one of the largest health service provider networks in Colombia and Latin America, representing about 100,000 patients, Khiron said in an Aug. 7 press release. The transaction, once closed, will provide Khiron with a direct distribution channel for its medical cannabis.

Khiron, which has its core operations in Colombia, had revenues of about C$10.5 million in 2017. The company will acquire ILANS through its subsidiary Khiron Colombia SAS for about C$7 million, including C$4.9 million in cash and the rest in Khiron shares. An additional C$5 million milestone-based payment, pertaining to patient acquisition over a period of two years from the closing of the transaction, will be payable by Khiron.

The closing of the transaction will be subject to the execution of a definitive agreement as well as approval from the respective boards of directors and the TSX Venture Exchange.