January 30th, 2018 – Cannabis Wheaton, a Canadian cannabis streaming company, announced that it had acquired 80% of Uruguay cannabis company Inverell. The Montevideo-based business has a federal license to produce high-CBD, low-THC cannabis strains.Inverell is currently growing the strains on about 40 acres (16 hectares) and has an additional 1,420 acres (574 hectares) available for additional production.
Cannabis Wheaton plans to spend up to $15 million to acquire 80% of Inverell shares. The transaction includes $2 million in cash, plus an additional $3.5 million worth of shares in Cannabis Wheaton, according to a news release.
“This transaction helps us secure a significant amount of CBD-rich hemp production that can be exported to other federally legal jurisdictions for further processing into nutritional and pharmaceutical products,” Hugo Alves, president of Wheaton, said in a statement.
Uruguay is the first country in the world to fully legalize marijuana, though the market is tightly controlled by the government.
Meanwhile, other South American countries have been legalizing marijuana for medical use. Peru, Chile, and Colombia have all passed medical marijuana legalization laws.
Canadian cannabis companies have taken a particular interest in Colombia: Three of the six federally licensed cannabis producers are headquartered in Toronto. PharmaCielo, one of those three, plans to export cannabis to Canada and beyond.