- Cann Group (CAN) has strategically invested C$1 million (just over A$1 million) in pharmaceutical company iuvo Therapeutics
- iuvo aim is to provide a wide range of medicinal cannabis products for the European market
- Cann’s investment was purchased through a C$5 million (around A$5.1 million) capital raising, currently being completed by iuvo
- Cann now holds around 2 per cent interest in iuvo
- Following the investment, Cann will have exclusive external rights to supply iuvo’s subsidiary, iuvo Germany, with medicinal cannabis extracts until the last day of 2021
- iuvo has already placed an initial order for 19,000 of Cann’s extract product, which is expected to be shipped to Germany within the next month
- On the market this morning, Cann is up 5 per cent and trading at 63 cents per share
Cann Group (CAN) has strategically invested C$1 million (just over A$1 million) in pharmaceutical company iuvo Therapeutics.
iuvo is focused on providing a range of medical cannabis products for European patients. Notably, just in Germany the company has access to over 20,000 pharmacies.
Cann’s investment was purchased through a C$5 million (around A$5.1 million) capital raising, currently being completed by iuvo. The purchase means Cann will holds around 2 per cent in iuvo.
Funds raised by iuvo will be used towards expanding sales and marketing capabilities and help with the construction of a new manufacturing and formulation facility in Malta.
Following the investment, Cann will have exclusive external rights to supply iuvo’s subsidiary, iuvo Germany, with medicinal cannabis extracts until the last day of 2021.
iuvo has already placed an initial order for 19,000 units, containing 30-millilitre extracts of Cann’s product, which is expected to be shipped to Germany within the next month.
This announcement is in line with the supply agreement for cannabis oil formulations and dried flower material, which was signed in May.
“This strategic investment will enable iuvo to expand its patient reach throughout Germany and Europe. Cann Group’s extracts are manufactured from Australian GMP Cannabis flower, providing regulatory, investment and supply security in a market with superior pharmaceutical standards,” iuvo Managing Director Daniel Seidl said.
Cann CEO Peter Crock believes the exclusive supply agreement will significantly increase the value and importance of the three-year supply agreement with iuvo Germany.
“We believe this initial order represents the largest shipment of product produced in Australia for export markets and is a tangible sign of iuvo’s commitment to servicing its growing customer base with safe, quality GMP standard medicinal cannabis,” he told the market on Tuesday.
Importantly, Germany is Europe’s largest medicinal cannabis market with 2019 sales exceeding those of all other European markets combined.
On the market this morning, Cann is up 5 per cent and trading at 63 cents per share at 11:43 am AEDT.