Correction: DanCann Pharma A/S is reducing its debt with current lenders through a share issue by conversion of debt at market conditions
Correction of press release of 21 March 2023: In the original press release, it was stated that DanCann Pharma A/S has issued 2,031,250 shares in a directed share issue on 21 March 2023, however DanCann Pharma A/S - due to currency exchange - has issued a total of 2,130,606 shares by debt conversion which was resolved on 29 March 2023, and below is the updated press release.
DanCann Pharma A/S (SS: DANCAN) (OTCQB: DCPXF) ("DanCann Pharma" or the "Company"), a Danish company powered by cannabinoids, has on 29 March 2023, based on an authorization from the general meeting, resolved to issue a total of 2,130,606 shares to two lenders at a subscription price of DKK 0.63 per share by conversion of debt in the total amount of DKK 1,342,281.78 (the "Share Issue").
The reasons for the deviation from the shareholders' preferential rights are mainly to be able to reduce the debt in the Company. The subscription price per share corresponds to the VWAP for the share over a period of 21-trading days up to and including 20 March 2023, which was the last trading day before the [agreement between the Company and the lenders on the debt conversion]. The Board of Directors' assessment is that the subscription price is at market terms since it has been determined through a 21-day VWAP.
The completion of the Share Issue results in a dilution of the existing share capital of the Company of approximately 3.2 per cent, and the total number of outstanding shares and votes of the Company is increased from 65,014,639 to 67,145,245.
In order to facilitate the delivery of shares to the lenders in the Share Issue, CEO, Jeppe Krog Rasmussen has made approx. 2,000,000 shares available for the lenders to borrow. At claim of the share loan, the borrowed shares will be returned after the Share Issue is registered with the Danish Business Register.
About DanCann Pharma
DanCann Pharma A/S (SS: DANCAN) (OTCQB: DCPXF) was founded in 2018 and is a Danish biopharmaceutical Company powered by cannabinoids. DanCann Pharma is a licensed production and distribution Company.
The Company focuses on discovering, developing, manufacturing, and commercializing new therapeutic cannabinoids in a wide range of disease areas.
DanCann Pharma is EU-GMP-approved by the Danish Medicines Agency under the Danish Pilot Programme for medical cannabis, and have, among other things, license for manufacturing, export, import and distribution. The DanCann Pharma group also owns the subsidiary CannGros ApS, which is the market leader in Denmark with the import and distribution of the products Bedrocan®, Bedica® and Bediol® to all the Danish pharmacies.
DanCann Pharma A/S (SS: DANCAN) is listed on the Spotlight Stock Market in Copenhagen/Stockholm and sidelisted on OTCQB Venture Market in USA (OTCQB: DCPXF).
For more information, visit: www.dancann.com
For further information, please contact:
Jeppe Krog Rasmussen, CEO
Phone: +45 2963 6920
E-mail: jkr@dancann.com
Forward-looking-statement:
Some statements in this release may contain forward-looking information. All statements, other than of historical fact, that address activities, events, or developments that the Company believes, expects, or anticipates will or may occur in the future (including, without limitation, statements regarding potential acquisitions and financings) are forward-looking statements. Forward-looking statements are generally identifiable by use of the words "may", "will", "should", "continue", "expect", "anticipate", "estimate", "believe", "intend", "plan" or "project" or the negative of these words or other variations on these words or comparable terminology.
Forward-looking statements are subject to several risks and uncertainties, many of which are beyond the Company's ability to control or predict, that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things, without limitation, the inability of the Company, to obtain sufficient financing to execute the Company’s business plan; competition; regulation and anticipated and unanticipated costs and delays, the success of the Company’s research strategies, the applicability of the discoveries made therein, the successful and timely completion and uncertainties related to the regulatory process, the timing and outcomes of regulatory or intellectual property decisions and other risks disclosed in the Company's public disclosure record on file with the relevant securities regulatory authorities.
Although the Company has attempted to identify important factors that could cause actual results or events to differ materially from those described in forward-looking statements, there may be other factors that cause results or events not to be as anticipated, estimated or intended. Readers should not place undue reliance on forward-looking statements. The forward-looking statements included in this presentation are made as of the date of this presentation and the Company does not undertake an obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise unless required by applicable securities legislation.