MYM Nutraceuticals Inc. subsidiary in Colombia, Colombia Organica S.A.S has signed agreements in principle to cultivate both THC and CBD-rich cannabis with independent farmers for an initial five acres.
Cannabis will be cultivated by farmers who will be licensees under the existing Colombia Organica cannabis cultivation licenses. The first crops cultivated on the initial five acres will function as test crops with the intention to add subsequent acreage. The climate in Colombia is ideal for cultivating cannabis, with the growing season being year-round it’s possible to harvest three crops of THC or CBD-rich cannabis annually.
“Our team in Colombia has begun to execute on our plan to cultivate both THC and CBD-rich cannabis in South America,” said Howard Steinberg, CEO of MYM. “The strategy of extending our licenses to neighbouring farmers to cultivate cannabis will serve to increase our biomass supply that we intend on processing and exporting to the global market.”
Colombia Organica is committed to extending its licenses to the independent farmers for an initial period of five years. The farmers will be responsible for all costs associtated with cultivation from seed to sale. Colombia Organica agrees to purchase the harvested biomass at a price to be determined at the time of delivery based on the average market price at that time.
MYM is currently finalizing the closing documents that will see its own 80% of Colombia Organica.