ODI Pharma AB announces sale of the skincare brand kandol. for 3.2 msek
ODI Pharma AB (“ODI” or the “Company”) announces today the sale of the skincare brand kandol. to Niclas Kappelin. The transaction, valued at 3.2 million SEK, includes the transfer of all inventories, production materials, trademarks, and copyrights associated with kandol. In connection with the transaction, CEO Derek Simmross and Chairman of the Board Volker Wiederrich will transfer 2,300,000 and 200,000 shares, off market, respectively to the buyer as part of the transaction.
ODI announces that the Company has sold the skincare brand kandol. to the main shareholder Niclas Kappelin for 3.2 million SEK. The sale of kandol. includes inventory, production materials, trademarks, and copyrights. The divestiture marks a profitable exit for ODI based on the current valuation of inventory and will allow ODI to redirect resources and expertise to its primary business segment, medical cannabis. With this solution in place, ODI has exited its cosmetic business attractively and is well positioned to continue its successful business in medicinal cannabis, namely Project Poland.
In conjunction with this sale, CEO Derek Simmross and Chairman of the Board Volker Wiederrich will be transferring a total of 2,500,000 shares to the buyer at zero cost. In detail, Derek will transfer 2,300,000 shares, and Volker 200,000 shares. This also means that investors in ODI don’t suffer any dilution from this transaction and benefit in full from current expansion plans which are underway.
“We successfully launched kandol. on key EU markets in 2021 to expand ODI’s business with specialized, highly CBD-infused skincare products. The sale of kandol. is profitable for ODI, allowing the Company to reallocate resources and to streamline operations in the Company’s core business of medical cannabis,” says Derek Simmross, CEO of ODI.
Lock-up agreement
Niclas Kappelin has committed to refrain from selling existing shares for a period of 9 months from the announcement of the transaction (commonly known as a lock-up). The lock-up agreement covers approximately 16,4 percent of the total number of shares in ODI.
Flagging announcement
As a result of the transaction off the market, shareholder Derek Simmross and Niclas Kappelin holdings in the Company will cross the flagging limit of 30 and 20 percent of ownership, respectively. Derek Simmross and Niclas Kappelin's ownership before the transaction amounted to 41 percent and 8.67 percent of shares in the Company, respectively. After the transaction, Derek Simmross holdings in the Company amounts to approximately 25.9 percent and Niclas Kappelin approximately 25.1 percent in ODI.
For more information on ODI Pharma, please contact:
Derek Simmross, CEO, ODI Pharma AB
E-mail: info@odipharma.com
This information is information that ODI Pharma is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above on December 6, 2023.
ODI Pharma AB
ODI Pharma, based on its European network, subsidiaries and affiliates, is a producer and representative of finished pharmaceutical cannabis and cosmetics products with a focus on distribution to the medical cannabis market in Europe through its subsidiary ODI Pharma Polska Sp. z o.o. ODI Pharma intends to provide a high-quality product at a competitive price compared to competitors in Poland, thereby becoming the number one provider of medical cannabis in Poland. ODI Pharma also strives to be on the forefront of understanding the medical applications of the product as well as introducing new, innovative products to the European patients in need. The Company will continue to team up with the most knowledgeable and best renown partners in the industry to achieve its goals.