Completion and correction: Interim report Q3 2020 DanCann Pharma A/S (publ)

Completion of summary for published press release.
Correction: Equtiy ratio for the period 1 July – 30 September 2020 is 0.77. It was recorded as -0.77 in the published interim report.

Financial overview 1 July – 30 September 2020:

• Net sales amounted to KDKK 0 (0)
• The operating loss was KDKK 2,298 (298)
• The loss per share was DKK 0.16 (2,980)
• The equity ratio was 0.77 (-4.98) 

Highlights during the period:

• On 6 July 2020 Jeppe Krog Rasmussen, CEO and Founder, entered the Board of Directors of DanCann Pharma.
• On 22 September 2020 John Morell Frellsen entered the organization of DanCann Pharma as interim Chief Commercial Officer (CCO).
• On 25 September 2020 DanCann Pharma entered into a Supply Agreement to source medical cannabis products for Denmark and the company’s Scandinavian and European markets with the global market leading MediPharm Labs Corp.

Highlights after the period:

• On 2 October 2020 DanCann Pharma announced that the company has been approved for listing on Spotlight Stock Market.
• On 7 October 2020 the subscription period in DanCann Pharma’s new share issue began.
• On 9 October 2020 DanCann Pharma announced that the company’s Chairman of the Board, Magnus Østergaard Dahlmann, Chief Commercial Officer, John Morell Frellsen (who works for the company as a consultant and is thereby not part of the company’s registered executive management) and Chief Financial Officer, Mads Møller Kristensen subscribed for units in the ongoing listing issue.
• On 28 October 2020 DanCann Pharma announced that the company’s new share issue of approx. DKK 30 million was oversubscribed. DanCann Pharma received subscriptions for a total of approx. DKK 55 million, including subscription commitments, corresponding to a total subscription of approx. 183 percent – and approx. 433 percent for the public part.
• On 10 November 2020 DanCann Pharma announced that additional board members and management have been allotted units in the IPO. In total, the lock-up from the board, management, and shareholders after the fully subscribed IPO amount to 8,221,565 shares, corresponding to approximately 39.66 percent.
• On 12 November 2020 the trading in DanCann Pharma’s shares started on Spotlight Stock Market.

Comments by the CEO

First, I want to thank the team and all our early stage investors and express how proud I am of everything we have achieved. We have each had to sacrifice a lot to stand here today for a much greater purpose than ourselves - and what a journey - I would not have changed or replaced my last 3 years for anything else.

This is our first interim report as a public and listed company, and I would like to take the opportunity to comment on some of the highlights that have happened these recent months, both during and after the period.

Overall, this Q3 2020 report reflect the ongoing development phase that the company is undergoing. This interim report is also our first opportunity to send our gratitude to all of you who have chosen to follow our journey and participate in the IPO. We have an exciting future ahead of us and we are now a few steps closer to realizing our vision. 

A vision based on a foundation of care, from which we grow our passion to improve health and life quality for patients with challenges. We challenge status quo, based on knowledge and innovation and we innovate life-changing technology – and if that means we need to challenge conventions, then that is what we do.

The period for Q3 2020 largely reflects the large and (time) demanding work leading up to our IPO – which we completed with great success where our IPO was subscribed to approx. 183 percent (DKK 55 million) – and approx. 433 percent for the publicly part (non-pre-subscribed). 

Everything seemed to be a good and solid first day of trading and on Thursday, November 12, we were introduced as a publicly traded company when trading opened on Spotlight Stock Market at 09:00. However, it should turn out to be a tough first trading day for DanCann Pharma as a listed company - and a remarkable outcome after an otherwise promising subscription and interest. From a managerial and organizational point of view, an outcome we have turned into a strong motivation boost. 

We are still overwhelmed and incredibly grateful for the great interest shown in our new share issue. The proceeds we have received will be used solely to develop our ability to make a difference for those in need for alternative treatment. I would like to welcome our many new shareholders (1,644 new shareholders from the day we were listed) who have become a part of our company and journey. Thank you to all parties who have somehow been involved and made all this possible. 

The 2-year-annual review of the Pilot Programme from the Danish government and the Danish Medicines Agency is expected to be published before the end of 2020, which has been postponed several times partly due to COVID19. 

It is by the management team’s strongest and clearest belief that the program is being extended – however – a review whose assessment can turn many things upside down, potentially to our advantage depending on the content and changes of the review. As a company, we are potentially facing some major strategic choices to be made - which, on the part of the management team, is assessed as strengthening our position in the market. This due to our business model which possesses strong flexibility and readiness for change – if the outcome should be that the strategy should be changed in a new or different direction. The uncertainty of the outcome has beenincorporated into our strategy from the very first beginning. 

We continue to see our current position as an advantage in relation to how the market has developed and that we have not "rushed" our business - but carefully considered how to approach this task. This is, as always, reflected in all the choices we, as an organization, make – to ultimately ensure patient safety and satisfying results for our stakeholders and shareholders.

Financial calendar

Year-end report 2020 26/02/21
Annual report: 08/04/21
Annual General Meeting 28/04/21
Interim report Q1 28/05/21
Interim report Q2 27/08/21
Interim report Q3 26/11/21
 

For further information, please contact:

Jeppe Krog Rasmussen, CEO
 E-mail: jkr@dancann.com
Web: www.dancann.com
 

About DanCann Pharma A/S

DanCann Pharma was founded in 2018 and is a Danish pharmaceutical biotechnology company powered by cannabinoids. DanCann Pharma is a vertically integrated, licensed cultivation and distribution company based in Denmark. The company focuses on discovering, developing, manufacturing, and commercializing new therapeutic cannabinoids in a wide range of disease areas.