Apollon Jamaica has acquired a Citiva Jamaica along with its university-affiliated research and production facility for medical grade cannabis.
Apollon Formularies Jamaica, an affiliate of the UK-based international pharmaceutical company Apollon is set to acquire Citiva Jamaica, a cannabis company originally started by Josh Stanley, co-founder of Charlotte’s Web.
The acquisition of Citiva Jamaica gives Apollon Jamaica ownership of a world-class research, cultivation, manufacturing and processing facility affiliated with the Medical School of the University of West Indies (UWI).
The deal is part of the company’s plans to become a vertically integrated, globally recognised medical cannabis business providing treatments and medicines with a specific focus on cancer.
Apollon said Citiva Jamaica’s facilities give the company a clear path to large-scale manufacturing of high-quality medical grade, full and broad-spectrum oils. It will use the GMP certification for use in its patent-protected cancer, chronic pain and inflammation treatments.
The facility comes with a Cannabis License Authority-issued cultivation licence, indoor cultivation facilities, approximately 30-35kg of processed full spectrum medical cannabis oil and processing equipment
Under the terms of the arrangement, Apollon Jamaica will acquire a 96 percent ownership of Citiva Jamaica, with UWI potentially holding up to 10 percent provided the company agrees to increase its current 4 percent stake in the firm.
Importantly, Apollon said it can now achieve the final approval step with the Ministry of Health and Wellness in Jamaica to distribute its patented cannabis-based medical products into the Jamaican national pharmacy and dispensary network. The company also aims to distribute its products in the broader Caribbean Community, the Southern African Development Community as well as other targeted markets globally.
“This acquisition of Citiva Jamaica is a transformative achievement and will allow access to global markets for our trademarked and patent-protected formulations; expanded university-affiliated research and development collaborations, including formulation discovery and clinical trials and provides immediate licensed cultivation for Apollon specific cultivars and strains,” Stephen Barnhill Jnr, Jamaican and North American COO of Apollon Formularies, commented.
“In addition, this acquisition significantly accelerates the goals of our Jamaican operations allowing the following accomplishments by year-end: initiating human clinical trials, having products approved by the Ministry of Health and sold in Jamaican pharmacies nationwide, and establishing significant global distribution for our medical cannabis preparations backed by our successful pre-clinical and clinical testing. Accomplishing these goals is expected to provide significant revenue growth as we now move to scale the business.”
Along with an established manufacturing facility, Apollon Jamaica will acquire Citiva Jamaica’s overall business model which will provide cannabinoid product development and treatment programmes to target specific illnesses and diseases, including certain cancers and childhood epilepsy.
Following the acquisition, Apollon Jamaica will finalise minor local permits required to achieve full GMP certification allowing Apollon Jamaica to export its products globally as well as expand into the national pharmacy and dispensary network in Jamaica.
“This massive increase in production capabilities will allow the export of our wide range of products and validated formulations to supportive jurisdictions globally starting with our partners in South Africa and the broader Caribbean representing a truly exciting time for shareholders,” Mr Barnhill added.
In consideration for the Acquisition, Apollon will pay US$60,000 cash as well as issue 18,465,910 new ordinary shares in Apollon to CJL Holdings, a US-based group. The shares will be subject to a nine-month, orderly market, lock-in agreement with one third of the shares becoming unrestricted after each 3-month period from the transaction date. Following completion of the Acquisition, CJL Holdings will hold approximately 2.39 percent of Apollon’s enlarged, issued share capital.
David Palmieri, Director of Operations at Citiva Jamaica, commented:Â “We are proud of the progress we have made since signing the collaboration agreement with UWI in 2015. We’ve worked extremely hard to get everything in place, and I’m pleased that Apollon Formularies will continue upgrading the facilities to achieve GMP certification which will further strengthen the Jamaican medical cannabis industry and help promote it worldwide, we look forward to being a shareholder in this very exciting company.”
Application will be made for the new ordinary shares to be admitted to trading on the Aquis Stock Exchange with admission and dealings expected to become effective on or around 11 August this year.
