Wayland Group Corp. (CSE:WAYL; FWB:75M; OTCQB:MRRCF) recently announced a letter of intent (LOI) with International Cannabis Corp. (ICC) (CSE:WRLD.U). Under the potential agreement, Wayland Group would sell 49.9 percent of the company’s international asset portfolio and receive 300 million shares of ICC at a price of $0.43 per share, valuing Wayland’s international business at approximately US$258 million.
Under the supply agreement, Wayland Group will supply ICC with 10,000 kilograms of EU-GMP-certified product each year for a total of three years. Wayland Group’s international business will also be held in a subsidiary jointly owned by the two parties.
In a recent interview on MidasLetter Live, Wayland Group CEO Ben Ward discussed the agreement and addressed how it will provide the company with access to a much broader distribution network across Europe.
“Selling half of the business to ICC gets us a broader framework and completes our vertical integration that we’ve been seeking across all the aspects in the value chain,” he said. “So we now have a EU GMP compliant pharmaceutical manufacturing facility in Greece, a federal license in Denmark, which we’ll be developing to give us certainty of product for the EU outside of Canada, and then it also gives us broad distribution.”
In discussing the agreement, Ward also addressed the steps that still need to be taken in order to close the deal. “We’ve already done the due diligence in Greece; we’re impressed with the facilities and the operations there, and we’ll be moving ahead with due diligence in Bulgaria, Denmark, and then in Poland, as well. Those are the places that we have yet to see. Our team was in Colombia last week, so there is really little left to do on the diligence side of things.”
To see the full interview, click here.