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Publicerat: 2022-08-05 10:00:00

DanCann Pharma A/S: DanCann Pharma A/S: The acquisition of CannGros ApS shows a prominent EBITDA of DKK 1.6 million for the annual 2021-report

COPENHAGEN, Denmark, 5 August 2022 - DanCann Pharma A/S (SS: DANCAN) ("DanCann Pharma" or the "Company"), a Danish company powered by cannabinoids, hereby announce that the 2021 annual report for the Company’s subsidiary CannGros ApS ("CannGros") shows positive results.

In the beginning of July 2022 CannGros published the annual result for 2021. A positive EBITDA result of DKK 1.685 million means a fivefold increase from the 2020 result which is very satisfactory.

In October 2021, DanCann Pharma acquired the wholesale company CannGros and at the same time took over import and distribution of products from Dutch company Bedrocan under the Danish Pilot Programme for medical cannabis. In connection with the acquisition, DanCann Pharma furthermore acquired the pipeline consisting of the current submitted product application at the Danish Medicines Agency regarding an oil-extracted cannabis product, which is expected to be approved for the Danish market in the second quarter of 2022.

The acquisition of CannGros meant that DanCann Pharma could instantly add a well-functioning sales function to the organization and thus for the first time in the Company's history get revenue. And there are several reasons why the acquisition of CannGros makes very good sense for DanCann Pharma.

Jeppe Krog Rasmussen, CEO of DanCann Pharma, comments:

 - The acquisition has helped boost DanCann Pharma's growth journey. It must be remembered that this is an 'early adopter' on the extremely regulated market for medical cannabis in Denmark, and thus CannGros has a unique and very valuable 'license to operate', which you cannot easily get your hands on. The industry is young and fragmented, so it's about bringing the players together early; it not only creates value in the industry, but also for patients, because with bigger players on the market, they can have easier access to the medicines they need.

- Following the acquisition back in October, we talked about the many synergies behind it and that the constellation compliments rather than cannibalizes. And furthermore, raising both the bottom line and gross profit - as well as the unrealized potential of the business, were we saw great optimization potential. I think this has definitely been proven in the 2021 annual report, where we have bought a company which performs (at a price of 13 MDKK) equaling a P/E rating of less than 8, with half paid out in DanCann Pharma shares, and without calculating for the entire foundation and the associated pipeline.

- In my opinion, this shows that we can identify and enforce solid M&A transactions, and ultimately, the acquisition must be seen as the Company's ambition to get closer to the patient, which is why you can also expect similar initiatives in the future that support this.

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.

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

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