Khiron Life Sciences Corp (CVE:KHRN) The Allure of Latin America

Alessandro Bruno

Khiron Life Sciences Corp (TSX-V: KHRN) (OTCQB: KHRNF) (Frankfurt: A2JMZC) has set its sights on Latin America, where it wants to become the dominant player in the mainstream medical cannabis market. Khiron has a license to conduct all cannabis related activities in Colombia, including cultivation, production, domestic distribution and international export of THC (tetrahydrocannabinol) and medical CBD cannabis (cannabidiol). The focus on Latin America sets Khiron apart: while other cannabis manufacturers are starting from Canada, facing more competition and legislative barriers and/or uncertainties, Khiron has jumped the proverbial line, avoiding the congestion and establishing a solid base in what promises to be a huge market – with relatively fewer competitors. Khiron offers investors the opportunity to take full advantage of the latest processing medicinal and recreational cannabis technologies in the backdrop of what is set to become a market encompassing the entire Latin American region as well as Europe.

The fact that in July 2018, former Mexican President Vicente Fox, who ran Coca-Cola Mexico before embarking on his political career, clearly shows that experienced entrepreneurs (it’s no surprise, given his understanding of the appeal of Coca-Cola) would recognize the value of the cannabis market and Khiron’s potential role. Fox, who has become a cannabis legalization activist, expects more and more governments in Latin America (with a population of about 650 million) to authorize the use of marijuana.

The Vancouver-based Khiron, has already started selling products in Colombia, and has established a 50/50 joint venture (JV) with Dixie Brands  (CNSX:DIXI.U) (FRA:0QV)of Colorado to develop and sell a line of CPG (consumer package goods) cannabis-based products in four countries (so far) in the region, including nutritional supplements and pets lines. On August 6, 2019, the Toronto Venture Exchange approved (conditionally) the JV, which will prompt two key catalysts for growth, starting in early 2020 – and in what is a $20 billion skincare market in the U.S. alone:

1. Sales of the Kuida cosmeceutical line will begin in the United States.

2. Dixie’s CBD-infused line will gain access to Latin American markets.

In a press release, Khiron CEO and Director Alvaro Torres said that through the JV would allow Khiron to bring “the full Kuida product line to U.S. consumers”, just as the company builds “capacity and market access to expand Kuida brand distribution into new jurisdictions globally.” Meanwhile, Khiron has acquired properties to build its strategic foothold in South America; and in the Mercosur (the South American common market, which includes full members Argentina, Brazil, Paraguay, Uruguay) trade bloc in particular. Apart, from Uruguay, recreational cannabis has not been legalized for consumption anywhere in Latin America. But, most analysts expect Mexico to legalize it before the end of 2019 (a draft Law was approved in 2018). Meanwhile, Brazil’s governments seems ready to legalize the cultivation of medicinal cannabis. Argentina has already done so – and loosened recreational use regulations.

The attraction of Colombia

 Many of Khiron’s Canadian competitors have focused their activities on North American production. But, Khiron, along with a handful of others, including Canopy Growth, have set up operations in Colombia. Simply put, Colombia presents ideal conditions for cannabis from both the production and the investment points of view, thanks to the land characteristics for cultivation, favorable climatic conditions and low production costs. Moreover, Colombia has adopted legislation that promotes profitable export worldwide, thanks to its multiple free trade agreements.

Cannabis is not just for export. The medicinal cannabis industry has been growing rapidly in Colombia, following the overall Latin American trend. And Colombian officials have encouraged and welcomed the injection of capital from Canadian entrepreneurs in the cannabinoid space. Canada, arguably, boasts the most experienced cultivators and processors of cannabis and Colombia wants to exploit the expertise to enhance its own existing technology to develop extracts and other cannabis derivatives. Thus, Canadian firms have found a welcoming regulatory environment, aimed at reducing risk. Indeed, Colombia’s success in attracting and retaining (mostly) Canadian cannabis entrepreneurs that neighboring Chile and Peru have adopted, and in some cases surpassed, Bogota’s licensing approach as a model.

Of course, in 2014, Uruguay was the first country in the world to legalize the consumption of marijuana for medical and recreational purposes. Keeping these budding prospects in mind, consider that Khiron announced that the company has closed a memorandum of understanding with Dayacann, which holds Chile’s first medical cannabis cultivation license. Khiron’s range of competence will enable it to cultivate, run clinical trials and access a medical cannabis market of some 1.8 million patients across the country. As Alvaro Torres, Co-Founder and Chief Executive Officer, Khiron Life Sciences, stated, Khiron has secured a first-mover advantage in the Chilean medical cannabis market.

Latin America the Next Major Cannabis Eldorado  

International consultancy New Frontier Data released its “Regional Report on Cannabis in Latin America: Sector Outlook in 2019”, noting that Latin America the cannabis industry could be worth as much as US$9.8 billion. Latin America, after Canada (a comparably small market), has witnessed a significant expansion of cannabis legalization for both medicinal and recreational use. Many countries in the region are legalizing cannabis and encouraging the establishment of (highly regulated) industrial producers and processers. Governments have clearly recognized the domestic and export opportunities that a regulated cannabis sector is capable of offering. Brazil, with a population of about 209 million, is the top prospect with its $2.38 billion potential market. Mexico follows at $1.9 billion and then there are Chile ($1.5 billion), Argentina ($1.1 billion) and the rest worth $2.8 billion. (Source: New Frontier Data).

Beyond Mercosur, Colombia, Peru, Ecuador, and Venezuela have followed suit, legalizing medical weed and decriminalizing personal use. Moreover, the European Union and Mercosur have recently concluded a preliminary agreement for a free trade deal, which would open what is the world’s largest cannabis market to Latin American producers. In this context Uruguayan producers are the ones poised to benefit first, given they’ve had a six-year head start over everyone else. And, Khiron recently acquired Netta Growth International, based in Uruguay. NettaGrowth, and wholly-owned subsidiary Dormul S.A., were among the very first companies to secure licenses to produce and export THC cannabis. Therefore, Khiron has gained some 120 metric tons of additional and licensed (flower and medical use capacity product), along with access to key markets in Mercosur, the rest of the Latin American market and the European Union.



Notice for Forward-Looking Information

Certain statements in this press release are forward-looking statements and are prospective in nature. Forward-looking statements are not based on historical facts, but rather on current expectations and projections about future events, and are therefore subject to risks and uncertainties which could cause actual results to differ materially from the future results expressed or implied by the forward-looking statements. Such forward-looking information includes that Khiron Life Sciences Corp will be a big, successful company in the cannabis sector; that cannabis use and sales will grow and KHIRON’s sales along with it; KHIRON’s intended acquisition of various foreign companies and expansion into the European and South and North American markets; that cosmeceuticals is and will continue to be a fast growing and profitable sector of the cannabis industry; and that it will be able to carry out its business plans.


Readers are cautioned to not place undue reliance on forward-looking information. Forward looking information is subject to a number of risks and uncertainties that may cause actual results or events to differ materially from those contemplated in the forward-looking information, and even if such actual results or events are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on KHIRON. Such risks and uncertainties include, among other things: that a regulatory approval that may be required for the intended acquisitions and subsequent sales are not obtained or are obtained subject to conditions that are not anticipated; growing competition for intended acquisitions in the cannabis industry; potential future competition in the markets KHIRON operates for sales; competitors may quickly enter the industry; general economic conditions in the US, Canada and globally; the inability to secure financing necessary to carry out its business plans; competition for, among other things, capital and skilled personnel; the possibility that government policies or laws may not permit legal cannabis sales or growth or that favorable laws in place may change; KHIRON not adequately protecting its intellectual property; interruption or failure of information technology systems; the cannabis market may not grow as expected; KHIRON’s technology may not achieve the expected results and its accomplishments may be limited; even if it is granted patents, it may not have success at licensing its technologies or sell its products at the rate expected; planned acquisitions and partnerships may not materialize because of inability to agree on terms with prospective partners or targets; KHIRON’s business plan also carries risk, including its ability to comply with all applicable governmental regulations in a highly regulated business; incubator risk investing in target companies or projects which have limited or no operating history and are engaged in activities currently considered illegal under US federal and foreign laws; and other regulatory risks relating to KHIRON’s business, financings and strategic acquisitions, including securities laws, trade rules, and foreign country regulation that is not the same as Canadian or US regulations.



PAID ADVERTISEMENT. This communication is a paid advertisement and is not a recommendation to buy or sell securities. James West, Global Financial Network Ltd. and Midas Letter Media Corp. and their owners, managers, employees, and assigns (collectively “the Company”) has been paid by the profiled company or a third party to disseminate this communication. In this case the Company has been paid by KHIRON $100,000 per month for one year as of May 15, 2019 for a newsletter campaign and certain banner ads, of which a portion is spent to produce multi-media content and a portion to the advertising budget targeting investor. In addition, the Company owns 150,000 Restricted Share Units (RSU’s) of KHIRON, and will benefit from its price appreciation. This compensation and our rights ownership in KHIRON is a major conflict with our ability to be unbiased, more specifically:

This communication is for entertainment purposes only. Never invest purely based on our communication. Gains mentioned in our newsletter and on our website may be based on end-of- day or intraday data. We have been compensated by KHIRON to conduct investor awareness advertising and marketing for KHIRON. Therefore, this communication should be viewed as a commercial advertisement only. We have not investigated the background of the profiled company. The profiled company or its affiliates may liquidate shares of the profiled company at or near the time you receive this communication, which has the potential to hurt share prices. Frequently companies profiled in our newsletters experience a large increase in volume and share price during the course of investor awareness marketing, which often end as soon as the investor awareness marketing ceases. The investor awareness marketing may be as brief as one day, after which a large decrease in volume and share price is likely to occur.

We do not guarantee the timeliness, accuracy, or completeness of the information on our site or in our newsletters. The information in our communications and on our website is believed to be accurate and correct, but has not been independently verified and is not guaranteed to be correct. The information is collected from public and non-public sources but is not researched or verified in any way whatsoever to ensure the information is correct.

SHARE OWNERSHIP. The Company, which includes the owner and publisher of the Midas Letter owns Restricted Share Units of this featured company and therefore has an additional incentive to see the featured company’s stock perform well. The Company will not notify the market when it decides to buy or sell shares of this profiled company in the market. The Company may be buying and selling additional shares of the featured company for its own profit. This is why we stress that you conduct extensive due diligence as well as seek the advice of your financial advisor or a registered broker-dealer before investing in any securities.

NOT AN INVESTMENT ADVISOR. The Company and its affiliates are not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment.

INDEMNIFICATION/RELEASE OF LIABILITY. By reading this communication, you agree to the terms of this disclaimer, including, but not limited to: releasing the Company, its affiliates, assigns and successors from any and all liability, damages, and injury from the information contained in this communication. You further warrant that you are solely responsible for any financial outcome that may come from your investment decisions.

RISK OF INVESTING. Investing is inherently risky. While a potential for rewards exists, by investing, you are putting yourself at risk. You must be aware of the risks and be willing to accept them in order to invest in any type of security. Don’t trade with money you can’t afford to lose. This is neither a solicitation nor an offer to Buy/Sell securities.



Alessandro Bruno

Alessandro Bruno

Alessandro Bruno, born in Naples, (BA and MA in International Relations, University of Toronto). Alessandro is a research analyst and writer in various business sectors and international politics. He was a Programme Officer for the UN in North Africa and a senior for one of the first international sustainable investment...
More Info...

[email protected]

Midas Letter is provided as a source of information only, and is in no way to be construed as investment advice. James West, the author and publisher of the Midas Letter, is not authorized to provide investor advice, and provides this information only to readers who are interested in knowing what he is investing in and how he reaches such decisions.

Investing in emerging public companies involves a high degree of risk and investors in such companies could lose all their money. Always consult a duly accredited investment professional in your jurisdiction prior to making any investment decision.

Midas Letter occasionally accepts fees for advertising and sponsorship from public companies featured on this site. James West and/or Midas Letter may also receive compensation from companies affiliated with companies featured on this site. James West and/or Midas Letter also invests in companies on this site and so readers should view all information on this site as biased.