ICC Labs Inc (CVE:ICC) (OTCMKTS:ICCLF) (FRA:2Q9) is Uruguayan, and it is South America’s only publicly traded marijuana company. It is currently “looking” for a different “regulatory” way to export CBD to Canada.
ICC Labs deals with both the medical and the recreational businesses after-all Uruguay became the first country worldwide last year to fully legalize marijuana for its 3.1 million population.
In an interview with Midas Letter published on Monday, ICC Labs’ Director Michael Galego talks about its deals with Canada and how it is exporting to the North American country soon to be the first developed nation to legalize the recreational use of marijuana.
In early 2017, ICC Labs struck a deal with the Ontario-based licensed producer Emblem.
Galego said under the Access to Cannabis for Medical Purposes Regulations (ACMPR), “there actually is a regulatory pathway to allow importation, and it’s for medical and scientific purposes.”
Since August 2016, ACMPR replaced the Marihuana for Medical Purposes Regulations (MMPR).
“And so under that track, we can actually export from Uruguay CBD dried flower and that was one of the relationships that we’ve struck on the export side.”
ICC Labs also struck a deal with another Canadian company, the Brampton-based cannabis company Nuuvera, which was recently acquired by Aphria for $826.
“We’re looking to export CBD crystal or CBD oils under a separate regulatory regime not governed by Health Canada,” he said without explaining further. “So those are the two main Canadian commercial relationships we have for import into Canada.”
Conventionally, international trade has to be done through Health Canada and under strict regulation with medical and research purposes being the main reason behind such transaction.
550 Acres of Licensed Hemp
For its recreational market, ICC Labs has an annual quota of two tonnes. “But we have run rate production of about four to five tonnes this year,” he said. “So as the domestic market expands, we expect our license to expand to meet the Uruguayan demand.”
ICC Labs’ second business segment is medical cannabis.
“We have over [outdoor] 550 acres of licensed hemp for CBD production in Uruguay, which is a tremendous land package if you look at Canadian peers,” he said.