SOMAÍ Prescription drugs Unipessoal LDA (“SOMAÍ”), a European EU-GMP pharmaceutical and biotechnology firm that distributes cannabinoid-containing prescription drugs worldwide, introduced in the present day that it has entered right into a definitive settlement with Akanda Corp. (US NASDAQ: AKAN), a global medical hashish. Firm, to amass 100% off the issued and excellent shares of its Portuguese subsidiary RPK Biopharma (Holigen).
The acquisition will considerably speed up SOMAÍ's world management, enhancing the Firm's capability to ship a portfolio of modern differentiated cannabinoid merchandise to satisfy the wants of sufferers worldwide.
- This strategic acquisition will increase SOMAÍ's capability with best-in-class cultivation, manufacturing and distribution property, making it one of many few verticals within the EU capable of meet the varied wants of the quickly rising European hashish markets.
- SOMAÍ can have an instantaneous management place of the dried flower market, a considerably expanded product portfolio, and a collaboration with a world well-known Cookies model.
- SOMAÍ can have entry to distribution channels in numerous EU markets with key distribution companions in Germany and the UK, together with the German market chief Cansativa.
The strategic acquisition of RPK Biopharma (Holigen), a grower, producer and distributor based mostly in Portugal, offers SOMAÍ with the capability and path to market to ship prime quality EU-GMP licensed medicinal hashish to authorized markets worldwide .
Holigen's subsidiary RPK Biopharma Unipessoal, Lda (“RPK”), consists of a 25,000 sq. foot EU-GMP licensed cultivation facility situated close to Lisbon (in Sintra) devoted to the cultivation of premium hashish flowers at excessive THC additionally has a big seven million sq. foot (180+ acres) outside facility situated two hours south in Aljustrel.
Mixed, the Firm believes that these services will present the capability flexibility in Portugal to provide two tons of premium indoor hashish flowers, greater than 100 tons of out of doors hashish flowers that can be utilized for prime quality extraction materials, and greater than ten tons of further manufacturing. annual capability.
Holigen's greatest indoor cultivation facility is without doubt one of the few services that may produce EU-GMP medical hashish equal to the leisure grades obtainable in North America. SOMAÍ may also profit from present provide agreements and key partnerships with main distributors in Germany, the UK and Australia. Holigen, because of its sturdy collaboration with Cansativa, has already had one of the profitable launches within the German market, supplying greater than 1000 kg of Strawberry Banana and Cherry Pie. The corporate is making ready for a major market launch of branded Cookies merchandise in 2024.
Key transaction highlights
Enterprise synergies. The acquisition brings collectively two worldwide medical hashish firms with complementary property; SOMAÍ, as a producer and distributor of modern cannabis-based medical merchandise, and Holigen, as a grower, producer and distributor of high-quality dried flowers. These two distinct property and capabilities characterize and serve the most important segments of the present and future hashish market.
An EU-GMP licensed facility. The acquisition offers the Firm with a second EU-GMP certification, strengthening SOMAÍ's pharmaceutical credentials and opening direct entry to the worldwide marketplace for dried flowers.
Enhanced money stream technology. The absorption of Holigen into the group is anticipated to end in 18 million euros of consolidated income within the first yr. The deal will additional strengthen SOMAÍ's working capital, enhance the margins of the flower line and convey the group drastically to profitability with rapid accretion for shareholders.
Unmatched world hashish management. Holigen will add to SOMAÍ's capabilities with superior cultivation and normal hashish experience. Tom Circulate, an internationally acknowledged cultivation skilled with over 20 years of expertise in a spread of hashish companies, is anticipated to hitch SOMAÍ, topic to settlement and board approval.
Cookies Model Partnership. By its present partnership with Cookies, SOMAÍ and its prospects now have entry to the world's main hashish model. The corporate is making ready for the thrilling launch of Cookies model merchandise within the EU and the UK.
Key buyer relationships. SOMAÍ can have entry to and profit from Holigen's distribution companions in key EU and UK markets. Holigen's sturdy relationship with Cansativa in Germany will assist propel the corporate's development trajectory by way of 2024, 2025 and past.
Premium indoor cultivation. The Sintra facility is a 25,000-square-foot premium indoor facility designed to provide at the least two tons of premium high-THC medical hashish per yr. The ability is one among a restricted variety of totally EU licensed GMP inside services at present working in Europe.
Giant-scale outside cultivation. The Aljustrel facility consists of over seven million sq. ft of cultivation capability and has accomplished a profitable outside develop on a 30 acre plot of land.
Expanded B2B gross sales and companies alternatives. With the acquisition of Holigen, whose in-house facility can develop as much as two tons of hashish and course of greater than ten tons per yr, SOMAÍ is poised to considerably improve its capability to course of premium hashish strains from across the globe, guaranteeing essentially the most excessive EU-GMP requirements.
The evolution of the European Hashish Market. Following the latest adjustments in German hashish regulation, extra European nations are anticipated to reprogram medicinal hashish and supply sufferers with wider entry to prescription drugs containing cannabinoids. This may present larger alternatives for the Firm to supply these new markets with a broad product portfolio as regulation progresses.
“The timing of the acquisition couldn’t be extra excellent, as Germany reprogrammed hashish and eliminated the narcotic stigma, paving the best way not just for a German hashish growth, however what would be the starting of an explosion world medical in Europe. Becoming a member of the small membership of EU verticals places SOMAÍ in partnership with main US MSOs trying to develop their footprint in Europe. This acquisition doubles SOMAÍ's projected income for 2024 and provides a steady line of Cookies strains, in addition to a facility to course of curated strains chosen from world wide,” stated Michael Sassano, the Founder and Interim CEO of SOMAÍ Prescription drugs.
Anton Nakhodkin, CEO and Board Member of SOMAÍ Prescription drugs, added, “SOMAÍ is poised for the most important world product launch to this point. We envision a world the place folks dwell wholesome and comfy lives empowered by pure medication. The acquisition of Holigen provides the lacking piece to create a very unmatched portfolio of modern merchandise designed to focus on quite a lot of affected person indications. As mirrored in our mission, “We care about craftsmanship” , we’re devoted to enhancing the well-being of people world wide.
“The mixture of SOMAÍ and Holigen is the right consequence for Holigen,” added Tom Circulate, Managing Director of Holigen.
“The services, operations and crew at SOMAÍ are world-class and we’re excited to work aspect by aspect with them. Holigen is getting into a milestone within the yr forward, with our most fun product launches to this point, the Cookies model merchandise within the EU markets! Lastly, this mixture creates a extra vertically built-in enterprise, with vital development, processing and underutilized distribution capability, which permits us to manage the worth chain, develop and income sources and seize market share.
Transaction Abstract
Below the phrases of the definitive settlement, SOMAÍ will purchase RPK Biopharma (Holigen) for US$2.0 million in money, and the idea to RPK of roughly US$3.3 million (€3.0 million) of non-recourse financial institution debt SOMAÍ.
The acquisition, which has been accepted by the Boards of Administrators of each firms, is anticipated to shut in March 2024 and is topic to the satisfaction or waiver of customary closing circumstances. SW4 Companions acts as the first monetary advisor to SOMAÍ, with Victoria Associates because the authorized advisor.
