DanCann Pharma A/S signs supply agreement with WEECO Pharma GmbH worth DKK 40 million
COPENHAGEN, Denmark, August 29, 2022 - DanCann Pharma A/S (SS: DANCAN) ("DanCann Pharma" or the “Company”), a Danish company powered by cannabinoids, hereby announce that the Company has signed a supply agreement (the “Agreement”) with WEECO Pharma GmbH (“WEECO Pharma”) for the German market during the period 2023 to 2025 (the “Period”).
WEECO Pharma is one of the leading importer and distributor of medicinal cannabis in Germany, with a distribution network in the country that includes direct connections to pharmacies, many cannabis suppliers, and distributors, as well as several pharmaceutical wholesalers. WEECO Pharma is positioned as one-stop-shop and offers multi-brand medicinal cannabis portfolio in the market. Over the last five years WEECO Pharma has partnered with most leading cannabis firms and has become one of the key players in the cannabis industry in Germany and Europe.
DanCann Pharma will sell and export flower products (the “Product”) to WEECO Pharma with its mainly focus on the Tetrahydrocannabinol (“THC”) genetics and candidates. WEECO Pharma will purchase, import, package, market, and distribute the products to the European medicinal cannabis marketplace. The Agreement is non-exclusive for the Products and is term for 3-year (36 months), with a binding commitment of approx. DKK 40 million for the Period. The starting point for the Period, which is 2023, starts lower, after which the volume increases over 2024 and 2025.
Within the Agreement, DanCann Pharma is subject for, and guarantees that the products are manufactured under Danish legislation, with guidelines set from the Danish Medicine Agency and hereby according to the Danish Ministry of Health requirements, including applicable rules for Good Agricultural and Collecting Practices (“GACP”), and European Union Good Manufacturing Practice ("EU-GMP") standards.
The two companies expect the first shipment to commence during May-2023, after DanCann Pharma have obtained all necessary approvals and documentation in the matter of the stability for the products.
Jeppe Krog Rasmussen, CEO of DanCann Pharma, comments:
- It has been a pleasure to do business with the WEECO Pharma team, who are the epitome of professionalism, where there is no doubt that they know what they are doing. WEECO Pharma is very skilled and have a professional team with a positive and way forward approach. A long-term partnership is based on trust and common values, and DanCann Pharma is more than satisfied with this signed agreement and look forward to the coming years and cooperation.
- This is one of our first major binding deals, but far from the last. We are very pleased with this, and it is something that we have been working on for a long time, and which shows that the Company is now facing the “commercial-phase-change” in relation to its major investment in our facility, Biotech Pharm1, and the sale and distribution of ingredients for customers and patients around Europe. Success in Germany, the largest market for medical cannabis in Europe and globally, is the path to success in Europe. Showing the DanCann Pharma flag through WEECO Pharma's strong distribution network and medicinal cannabis sales team will ensure that we become a significant supplier to the German market.
Rene Zix, Head of sales at WEECO Pharma comments:
- We are all very pleased to be starting our partnership with DanCann Pharma and adding them to our group of selected producers and genetics collaborators. They are a professional, highly knowledgeable team who share the same vision as us. Our customers will benefit from DanCann Pharma’s excellent quality medical cannabis. We are looking forward to working and growing together and offering our patients a better quality of life.
About WEECO Pharma GmbH
WEECO Pharma GmbH was founded in 2018 and is one of the leading EU-GDP medicinal cannabis companies in Europe. WEECO Pharma is built on a unique business model to supply top grade medicinal cannabis from all over the world to more than 40 German medical cannabis wholesalers, at affordable prices, using a distribution hub concept. WEECO Pharma provides a trading network within the German industry, and exports products to 7 international destinations.
For more information, visit: www.weeco.com/
About DanCann Pharma A/S
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
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 make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 29-08-2022.