Perth-based pharmaceutical company AusCann announced that it has finalised the sale of the company’s right, title and interest in its 50% owned Chilean joint venture, DayaCann, to GrowForChile SpA (GFC) and Telor International Limited.
The agreement, which also includes the transfer of the company’s loan with DayaCann to GFC, will see AusCann receive a total of US$1.5 million by 2023.
“The consideration for the sale of the DayaCann shares and the first instalment for the transfer of the loan have been received, amounting to a receipt of US$500,000,” AusCann told the ASX.
“Two further receipts are due for the combined amount of US$1,000,000 over the next two years.”
AusCann formed the 50:50 joint venture with Fundación Daya in Chile in November 2016 to cultivate and supply local and global markets with cost-effective medicinal cannabis.
DayaCann today is the only commercial-scale medical cannabis cultivation company in Chile that obtained production licences to complete multiple harvests yielding a total of over 1,000kg of dried cannabis flower.
However, the Chilean government has constrained the supply of cannabis to Chilean patients and has not approved the export of medicinal cannabis out of Chile, which was previously anticipated.