KRTL Holding Group Inc. (OTC: KRTL) subsidiary KRTL Biotech Inc. has signed a Memorandum of Understanding (MOU) with Industria Químico Farmacéutica Sigma Corp. S.R.L. (“Sigma”) of Bolivia. This MOU outlines the framework for a strategic international merger between the two companies.
Under the MOU, Lakewood-based KRTL Biotech and Sigma have developed key merger provisions, which include a shared governance structure, consolidated financial oversight and aligned Quality Management Systems. Sigma will maintain full operational autonomy in Bolivia, while the partnership will focus on cross-border compliance, coordinated financial operations and integrated strategic governance.
“This MOU marks a pivotal milestone for KRTL Biotech and a transformative step in our international expansion,” said Cesar Herrera, CEO of KRTL Holding Group Inc. “By joining forces with Sigma, we are strengthening our global regulatory capabilities and expanding pharmaceutical production capacity across U.S. and South American markets.”
As part of the agreement, Sigma will receive equity in KRTL Holding Group Inc., which includes one Special 2021 Series A Preferred Share and representation on KRTL Holding’s Board of Directors. Key Sigma executives will also receive individual common stock allocations.
Financial integration will be handled through SIGMARTL Corp, a U.S.-based financial management entity designed to track global revenue, ensure compliance and manage profit-sharing mechanisms. The legal structuring and regulatory due diligence of the merger are being managed by a specialized law firm in South America that has experience in international mergers and pharmaceutical regulations.
The final Business Merger Agreement is currently in development and will be established upon securing all necessary legal and financial conditions. The MOU also outlines plans to consolidate Sigma’s manufacturing operations and revenue streams into KRTL Biotech, facilitating the import and commercialization of Sigma’s products in the United States.
The merger is expected to enhance operational efficiency, allowing Sigma’s production facilities—currently operating at approximately 40% capacity—to scale output. Sigma generates annual revenues exceeding $20 million, and the combined entity anticipates the potential to double that figure within two years after full integration.
This initiative is part of KRTL Biotech’s strategy to become a central player in international pharmaceutical production, API oversight, and regulatory compliance, enhancing production capacity and fostering innovation in therapeutic development.
