Khiron Life Sciences Corp. (TSXV: KHRN), a Canadian public cannabis company that operates out of Colombia, has announced this week that it has entered into a LOI with the Latin American Institute of Neurology and the Nervous System (ILANS) to acquire the company under its wholly owned subsidiary Khiron Colombia SAS.
ILANS has been growing into one of the largest health service provider networks in Latin America. The two companies have recently entered into a strategic alliance where Khiron would supply medicinal cannabis to patients in need at ILANS facilities in South America.
If the transaction is successful, Khiron will be acquiring two neurological clinics located in Bogota, an estimate network of over 100,000 patients and 46 physicians to their medical team. ILANS has generated a reported revenue of $10.5M in 2017.
Khiron will be purchasing the Latin American Institute of Neurology and the Nervous System for $7.0 million dollars, 70% of which will be delivered in cash and 30% will be delivered in stock.
“This acquisition represents one of the most significant developments for Khiron to date. We will secure a significant revenue stream from patients within our target market and see multiple opportunities to further scale revenue and drive profitability from introducing medical cannabis to ILANS patients,” said Alvaro Torres, CEO of Khiron.