Canadian MYM Signs MoU with Colombian NEWCANNA for Large-Scale Pot Cultivation

Columbian indigenous growers will help increase production of MYM’s new Columbian partner NEWCANNA to over 1,000,000 kg of cannabis in a year or two.

The Vancouver-based MYM Nutraceuticals Inc. has signed a Memorandum of Understanding (MoU) with a leading Columbian medical cannabis company NEWCANNA S.A.S. to focus on large-scale commercial cultivation and scientific research, the Canadian company said in a press release on Monday.

MYM – focused on producing and selling organic medicinal cannabis supplements and topical products – and NEWCANNA is proposing a joint venture or partnership agreement to transform their large-scale production of cannabis and hemp “for medical, scientific and industrial purposes” and “export to worldwide markets.”

The jointly owned company NEWCANNA already has agreements in place with multiple indigenous communities in the South American countries, totaling over 400 families or about 1,400 people. These families control 7,400 acres of cultivation property and have the capacity to be producing approximately 217,500 kg of high-grade cannabis for processing and export worldwide.

View of a marijuana field in the mountains of Tacueyo, Cauca, Colombia, February 10, 2016.
View of a marijuana field in the mountains of Tacueyo, Cauca, Colombia, February 10, 2016. (Image via Reuters)

Indigenous Growers

The indigenous growers will help to increase NEWCANNA’s production to be over 1,000,000 kg of cannabis in a year or two.

Columbia’s high mountains play a key factor in giving the perfect climate to grow cannabis and allow production costs to be a fraction of what it costs to produce in Canada, the company said.

MYM already has two production projects in their home province of Québec, when completed it will have over 1.5 million square feet of production space.

Globally, MYM is also a partner in a 1.2 million-square-foot production project – the Northern Rivers Project – in New South Wales and Australia.

“Global Cannabis Player”

MYM’s CEO Rob Gietl said: “NEWCANNA’s commitment to working with the indigenous population of Colombia satisfies MYM’s position to work with local communities and provides economic benefits to local inhabitants.”

He also said that the partnership will help his company to become “a global cannabis player.”

He added,

“NEWCANNA has the infrastructure in place to dominate the Colombian cannabis markets both domestically and for exportation to the rest of the world.”

MYM has previously said it has no interests in expanding in the U.S. due to the federal government’s tough regulations on marijuana, but the Canadian company said it is constantly on the lookout to acquire complementary businesses and assets in the technology, nutraceuticals and CBD sectors.

Meanwhile, the company said in its press release that there can be no assurances that the “transaction contemplated by the MoU will be successfully completed.”

MYM has the Colombian law firm Dentons Cardenas & Cardenas Abogados Ltda. to represent its interests in the South American country.