Khiron closes deal in Chile, solidifying stronghold over Latin American cannabis market
On Monday, Khiron Life Sciences (TSXV:KHRN), (OTCQB:KHRNF) closed on their previously announced MOU with Dayacann, the holder of Chile’s first medical cannabis cultivation license, officially expanding the company’s foothold in Latin America. The company, whose core operations are in Colombia, now has access to both a new source of cannabis as well as over 1.8 million potential patients to add to their rolls.
Khiron first announced a deal with Dayacann back in late September of last year, proposing their intentions to operate in Chile — under the proper regulatory approvals — and to participate in clinical trials while also distributing medical cannabis products throughout the country. Under the final agreement, Khiron will be able to deliver on this strategy for two years, while accessing enough cannabis to treat around 45,000 patients per year.
"As part of our multi-jurisdiction cultivation strategy, the closing of this important agreement gives Khiron a first mover advantage in meeting legislative cultivation requirements, and commercializing medical cannabis products,” said CEO Alvaro Torres in a statement. “Partnering with Dayacann allows us to accelerate entry into this market and to further our stated objective to be the medical cannabis market leader in Latin America."
Chile has always been a part of Khiron’s larger Latin American strategy as a patient-centric company. As Co-founder Andrés Galofre told PotNetwork in an exclusive interview in December of last year, education is one of the key pillars of Khiron’s mission, and they bring that to wherever they go in Latin America or beyond.
“The idea of having these associations [of doctors] is just to raise awareness and to provide knowledge of what medical cannabis is, and we’re doing that in Colombia,” said Galofre. “We’re moving forward in Mexico to do something similar within the Mexican market, and in Chile and Peru, we’re replicating the same model. So for us, it’s always, doctors are the key holders of what we’re doing.”
According to a statement put out by Khiron, Chile has a GDP of over $24,000 per capita and has the strongest economy in Latin America. It is considered to be one of the more stable countries in the region and was the first to allow the cultivation of medical cannabis. Khiron hopes to leverage their position in Chile to further their stronghold over the Latin American cannabis market.
As of Monday afternoon, Khiron stock was up 3.42 percent on the OTC market, trading at $1.21 per share.