M2Bio Sciences forms a strategic partnership with African Cannabis heavyweight Medigrow Africa, while also commencing the process of acquiring Tsime Pharmaceuticals and Medicinal Supplies (Pty) Ltd. (“Tsime”).
The coalition with Medigrow Africa and the acquisition of Tsime will provide an opportunity for M2Bio Sciences (OTCMKTS: $WUHN) to position itself, as a dominant player in the African Cannabis market and gain greater control over the supply chain.
M2Bio Scienses has entered into a distribution agreement with Medigrow Africa.
Medigrow Africa is the largest collective of African medicinal cannabis growers, producing international medical-grade cannabis products for global distribution. The firm benefits from Africa’s low labour, land and regulatory costs. Which has allowed the firm to produce its cannabis and hemp products at the lower tier of costs and achieve upper tier of profitability globally.
Under the arrangement, M2Bio Sciences will source cost effective international medical-grade hemp and cannabis concentrates including CBD gummy bears from Medigrow Africa. Which will be implemented into their premium Dr. AnnaRx™ and Medspresso™ product lines.
By sourcing locally from, M2Bio Sciences will be able to benefit from:
- Lower cost of raw material
- This will reduce the cost of goods sold, improving the firm’s margins and leading to an increase in income. In turn, placing the firm in a greater cash position which they can leverage to become a dominant player in the African cannabis space. Ultimately, providing investors with enhanced value.
- Greater quality of product
- By utilizing global best practices, technical expertise and traditional African agriculture knowledge, Medigrow Africa is able to provide a consistent and quality product.
- Contributing to the South African economy
- By purchasing domestically, the firm will contribute greater tax revenue to the South African economy. As well as, create job opportunities for the marginalized citizens of South Africa. A social issue both, Medigrow Africa and M2Bio Sciences are pressing on solving.
The Man Behind Medigrow Africa
Willem Jonker, founder and CEO of Medigrow Africa, turned to the cannabis space after becoming acquainted with individuals who had trouble acquiring a cannabis cultivation license.
Willem personally understood the inefficiencies of the medicinal cannabis market in Africa.
His wife had been using cannabis oil for years, as a preventative measure for cancer. A disease which plagued her entire family. Willem observed, great variability in cannabinoid content, quality and price when his wife was sourcing cannabis oil online.
There was also no form of recourse that could have been take against online vendors. Troubled by this, Willem decided to establish Medigrow Africa to provide a consistent, quality and cost-effective product.
Medigrow Africa currently holds eights cannabis cultivation licenses in four countries (Lesotho, Zimbabwe, South Africa and Jamaica), with sights on expanding to ten additional countries.
Relationship Between Management
Jeff Robinson, a seasoned investor, and Willem Jonker, a trained accountant and former project financier, both share backgrounds in finance. This proves advantageous, as both individuals will make informed decision to enhance value.
The pair shares a common vision for the future growth of M2Bio Sciences, as well as the future of the cannabis space being concentrated towards wellness products.
“Willem and I hope to do some great things together, in a partnership, to really grow and become…the dominant player in Africa…[and] globally…[T]he vision being where to go, we seem to really complement each other.”
– Jeff Robinson, Founder & CEO of M2Bio Sciences
Acquisition of Tsime Pharmaceuticals and Medicinal Supplies (Pty) Ltd.
On July 16th, M2Bio Sciences struck a Memorendum of Agreement to pursue the acquisition of Tsime Pharmaceuticals and Medicinal Supplies (Pty) Ltd. Under the arrangement, Tsime will become a subsidiary of M2Bio Sciences.
This will give the firm access to Tsime’s license to cultivate, extract and process medicinal cannabis and the sale of the commodity for medicinal, scientific, and other legal purposes.
Tsime currently has permission to grow 3 hectares of medicinal cannabis on its 32 hectare farm. Located in Lesotho, South Africa, the region harbours favourable growing condition, low labour costs, and a pro-Cannabis government with low regulatory burden.
The acquisition of Tsime brings the firm one step closer to vertical integration.
By controlling the cultivation process, M2Bio Sciences will benefit from the lower costs of sourcing CBD for their product line which will lead to greater profits. The firm may also, choose to sell their medicinal cannabis to other firms and research groups which will further enhance their income.
This also provides an opportunity for M2Bio Sciences to study the plant’s properties throughout the growing process which may give way to new cannabis-derived products in the future.
The acquisition is expected to be completed within 90 days.
June 10th – Following the announcement shares depreciated by 2.94% up to June 12th. This can be attributed to general market conditions. Following this, shares appreciated by 16.7% from June 12th to July 1st; closing from $0.33 on June 12th to $0.38 on July 1st.
July 17th – On the day of the announcement the stock slid 8.94%. This may be the result of investor’s already pricing in the lower cost of Cannabis from the Medigrow partnership. It can also be attributed to a lag of investor’s hearing and reacting to the news, as the loss was partially reversed on July 20th with a peak appreciation of 5.53%.
“There is an African expression, that if you want to walk fast then you must walk alone, but if you want to walk far then you must walk with someone else…”
– Willem Jonker, Founder & CEO of Medigrow Africa
M2Bio Sciences arrangement with Medigrow Africa and acquisition of Tsime will allow the firm to incorporate cost-effective hemp and cannabis concentrates into their Dr.AnnaRx™ and Medspresso™ product lines.
Improving both the firm’s value and the South African economy. A combo as good as, Medspresso and Cream.
MONTREAL, QC / ACCESSWIRE / June 10, 2020 / WUHAN GENERAL GROUP, INC. (OTC PINK: $WUHN) (“Wuhan” or the “Company”), a bioceutical company focused on alternative plant-based cannabinoids and psilocybin medical research, is pleased to announce the signing of a distribution agreement with Medigrow Africa (“Medigrow”), an African based medical cannabis company with a formal network of legal African cannabis growers producing international medical-grade cannabis products for global distribution.
Under the distribution agreement, Wuhan will receive commercial licenses and rights to Medigrow’s portfolio of medical-grade cannabis and hemp products. In the terms, Wuhan is granted the rights and will be responsible for marketing, distribution, and sales of certain Medigrow proprietary natural hemp and cannabis-based products.
“We see many strategic business opportunities to expand our relationship with Medigrow and this Agreement is the first of many other significant associations going forward with our partner. The Medigrow portfolio of international-grade medical cannabis products is a very tactical addition to our range of products and it really strengthens our commitment to medical cannabis,” said Jeff Robinson, CEO of Wuhan.
“Our product range has been developed using innovative research and specialized formulations in order to deliver valuable health benefits to the consumer. This partnership will reinforce our brands Dr. AnnaRx™ and Medspresso™ as well as raise awareness on the importance of high premium quality medical cannabis ingredients in our products,” added Dr. Anna, CMO of Wuhan.
Medigrow founder and CEO Willem Jonker said; “This partnership is the first of many steps going forward with Jeff Robinson and the Wuhan team. We share a common vision and execution strategies that will enable us to build a very profitable global powerhouse. “
About Medigrow Africa
Medigrow Africa is a formal network of legal African cannabis growers producing international-grade medical cannabis products for global distribution. Medigrow Africa is the the largest collective of African cannabis businesses and it dominates the African medicinal cannabis industry. Medigrow benefits from lower labor, land, and regulatory costs. Also, Medigrow is in the lower quartile of production costs and the upper quartile of profitability globally.
Produce European-quality medicinal cannabis with an African cost base.
Our mission is to give as many people in the world access to medicine from the cannabis plant and to benefit as many Africans as possible through the establishment of a medicinal cannabis industry in Africa.
For our customers: Medigrow Africa brings exceptional African medicinal cannabis products to the global market by combining global best practice and technical resources with traditional local knowledge and Africa’s favorable climate to grow the highest standard of cannabis.
Medigrow respects human rights, the rule of law, justice and equality. Therefore, we aim to fully align with the United Nations Agenda 2030 (the Sustainable Development Goals).
The Global Cannabis market is booming through legalization, declassification, research, entrepreneurship and broader social acceptance. Africa is no different, which is evident in the number of countries that have legalized medicinal cannabis production recently.
Medigrow envisions Africa as the “centre-court” of future cannabis cultivation. We can see the beginnings of a new legal/formal industry and consequently new means of income, especially in rural areas around Africa. In the longer term, we are convinced that the African Cannabis Industry can help bring steady income to many people that lack work today, assist in building up infrastructure, and blur social stigmas while providing world-class medicinal cannabis to the globe.”
Our underlying environmental philosophy is continuing to investigate ways to reduce the environmental impact of our operations.
As part of Medigrow Africa’s intent to maximize the return on every hectare of cannabis, we are particularly mindful of the possible impacts of our operations on the use of natural resources and strive to minimize our impacts through efficient use responsibly and sustainably and through committing ourselves to continuous improvement.
We strive to comply with all applicable in-country environmental regulations. Furthermore, we are investigating a range of initiatives to preserve ecosystem integrity, protect biodiversity and enhance agricultural sustainability.