DanCann Pharma A/S Announces Closing of the Previously Announced Acquisition of CannGros ApS
COPENHAGEN, Denmark, 20 October 2021 - DanCann Pharma A/S (SS: DANCAN) ("DanCann Pharma"), a Danish company powered by cannabinoids, and CannGros ApS (“CannGros”) a national leader in sales of medical cannabis in Denmark through the Pilot Programme, has today closed the Agreement (“the Transaction” or “the Agreement”) according to which DanCann Pharma will acquire 100% of the shares of CannGros cf. the press release of 05 October 2021. Through the acquisition, DanCann Pharma obtains all necessary licenses for the import and distribution of medical cannabis, as well as three products (dried flower and granulars) admitted to the list of medical cannabis products under the Danish Pilot Program with medical cannabis. In addition to this, CannGros has a pending application (extracts of cannabis in an oil solution) at the Danish Medicines Agency (“DMA”).
Transaction- and motive of the acquisition in short
Through the acquisition of CannGros, DanCann Pharma have obtained all the necessary permits for the import and distribution of medical cannabis in Denmark under the Pilot Programme. CannGros have become a subsidiary company of DanCann Pharma, and it is DanCann Pharma’s intention to keep the brand (CannGros ApS - by DanCann Pharma A/S) due to its strong representation in the market over the past 4 years.
Under the terms of the Agreement, owners of CannGros have received 7 MDKK of DanCann Pharma shares (“The Consideration Shares”) at a market price issued at a price of DKK 3.664 per share, equal to the volume-weighted average price (“VWAP”) on Spotlight Stock Market for the 10 consecutive trading days preceding as of 04 October 2021 (including trading at the 04 October 2021). 100 percent of The Consideration Shares is subject to a 1-year lock-up period from the date of completion of the Transaction. The Transaction also includes an amount of 6 MDKK payable in cash over two installments.
Combined, DanCann Pharma and CannGros will create significant improved capabilities within time to market, growth, strategic partnerships, and own development of a unique value proposition in the Danish medical cannabis industry.
With the acquisition of CannGros, and by obtaining necessary licenses and permit for import and distribution from the DMA combined with the distribution structure established by CannGros, DanCann Pharma can accelerate and move forward its business areas for import and distribution by an estimated 6-12 months earlier than expected.
For further information about the Agreement, please read our press release of 05 October 2021.
Disclaimer
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.
This disclosure contains information that DanCann Pharma A/S is obliged to publish in accordance with the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 20 October 2021.
About DanCann Pharma
DanCann Pharma A/S (SS: DANCAN) was founded in 2018 and is a Danish biopharmaceutical Company powered by cannabinoids. DanCann Pharma is a vertically integrated, licensed production 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.
DanCann Pharma A/S (SS: DANCAN) is listed on the Spotlight Stock Market in Copenhagen.
For more information, visit: www.dancann.com
For further information, please contact:
Jeppe Krog Rasmussen, CEO
E-mail: jkr@dancann.com
Website: www.dancann.com