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Apollon to acquire world-class research and production facility in Jamaica

Apollon has reached an agreement to acquire Citiva Jamaica in a part-cash, part-shares transaction.

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apollon acquirez Citivia Jamaica

Apollon Jamaica has acquired a Citiva Jamaica along with its university-affiliated research and production facility for medical grade cannabis.

Apollon Formularies Jamaica, an affiliate of the UK-based international pharmaceutical company Apollon is set to acquire Citiva Jamaica, a cannabis company originally started by Josh Stanley, co-founder of Charlotte’s Web.

The acquisition of Citiva Jamaica gives Apollon Jamaica ownership of a world-class research, cultivation, manufacturing and processing facility affiliated with the Medical School of the University of West Indies (UWI).

The deal is part of the company’s plans to become a vertically integrated, globally recognised medical cannabis business providing treatments and medicines with a specific focus on cancer.

Apollon said Citiva Jamaica’s facilities give the company a clear path to large-scale manufacturing of high-quality medical grade, full and broad-spectrum oils. It will use the GMP certification for use in its patent-protected cancer, chronic pain and inflammation treatments.

The facility comes with a Cannabis License Authority-issued cultivation licence, indoor cultivation facilities, approximately 30-35kg of processed full spectrum medical cannabis oil and processing equipment

Under the terms of the arrangement, Apollon Jamaica will acquire a 96 percent ownership of Citiva Jamaica, with UWI potentially holding up to 10 percent provided the company agrees to increase its current 4 percent stake in the firm.

Importantly, Apollon said it can now achieve the final approval step with the Ministry of Health and Wellness in Jamaica to distribute its patented cannabis-based medical products into the Jamaican national pharmacy and dispensary network. The company also aims to distribute its products in the broader Caribbean Community, the Southern African Development Community as well as other targeted markets globally.

“This acquisition of Citiva Jamaica is a transformative achievement and will allow access to global markets for our trademarked and patent-protected formulations; expanded university-affiliated research and development collaborations, including formulation discovery and clinical trials and provides immediate licensed cultivation for Apollon specific cultivars and strains,” Stephen Barnhill Jnr, Jamaican and North American COO of Apollon Formularies, commented.

“In addition, this acquisition significantly accelerates the goals of our Jamaican operations allowing the following accomplishments by year-end: initiating human clinical trials, having products approved by the Ministry of Health and sold in Jamaican pharmacies nationwide, and establishing significant global distribution for our medical cannabis preparations backed by our successful pre-clinical and clinical testing. Accomplishing these goals is expected to provide significant revenue growth as we now move to scale the business.”

Along with an established manufacturing facility, Apollon Jamaica will acquire Citiva Jamaica’s overall business model which will provide cannabinoid product development and treatment programmes to target specific illnesses and diseases, including certain cancers and childhood epilepsy.

Following the acquisition, Apollon Jamaica will finalise minor local permits required to achieve full GMP certification allowing Apollon Jamaica to export its products globally as well as expand into the national pharmacy and dispensary network in Jamaica.

“This massive increase in production capabilities will allow the export of our wide range of products and validated formulations to supportive jurisdictions globally starting with our partners in South Africa and the broader Caribbean representing a truly exciting time for shareholders,” Mr Barnhill added.

In consideration for the Acquisition, Apollon will pay US$60,000 cash as well as issue 18,465,910 new ordinary shares in Apollon to CJL Holdings, a US-based group. The shares will be subject to a nine-month, orderly market, lock-in agreement with one third of the shares becoming unrestricted after each 3-month period from the transaction date. Following completion of the Acquisition, CJL Holdings will hold approximately 2.39 percent of Apollon’s enlarged, issued share capital.

David Palmieri, Director of Operations at Citiva Jamaica, commented: “We are proud of the progress we have made since signing the collaboration agreement with UWI in 2015. We’ve worked extremely hard to get everything in place, and I’m pleased that Apollon Formularies will continue upgrading the facilities to achieve GMP certification which will further strengthen the Jamaican medical cannabis industry and help promote it worldwide, we look forward to being a shareholder in this very exciting company.”

Application will be made for the new ordinary shares to be admitted to trading on the Aquis Stock Exchange with admission and dealings expected to become effective on or around 11 August this year.

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Medcolcanna signs European medical cannabis sales agreements

The company has entered into sales agreements with German company, Greenstein, and Cantourage.

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Medcolcanna signs European medical cannabis sales agreements
Home » News » Markets and industry » Apollon to acquire world-class research and production facility in Jamaica

Canada-based globally integrated medicinal cannabis company with operations in Colombia, Medcolcanna, has signed two EU Sales agreements for EUGMP and CUMS-IMC certified dried flower.

Medcolcanna has signed agreements with German-based Greenstein, as well as Berlin-based Cantourage.

The sales agreement with German-based Greenstein has a three-year term, with the possibility of extension, and establishes a minimum purchase of 1200 kg during the first year, 2000 kg during the second year and 2,500 kgs during the third year.

Its sales agreement with Cantourage for Germany and the UK has a five-year term, with the possibility of extension. The initial forecast presented by Cantourage establishes approximately 800 – 1000 Kgs for the first year.

Read more: Ugandan-grown medical cannabis reaches UK market

Cantourage will distribute the flower through its proprietary clinics and distribution in the UK and through its network of pharmacies in Germany. Medcolcanna has developed a new brand for distribution with Cantourage in UK and Germany, followed by Poland within the next few months.

Six Medcolcanna proprietary strains have been already registered with the German Narcotics agency, and the production will be based on supply from the Medcolcanna farm located near Bogota. Additionally, THC quotas have been granted by the Colombian Government and are in place with the first exports expected by October to November 2022.

CEO Felipe de la Vega commented: “It has being a long and difficult journey since we created the company. A market that we were trying to understand and anticipate but that was being created. Therefore, making decisions was more complex. 

“CBD market for extracts and isolates became very competitive with the US hemp farm bill affecting projections. The market for THC extracts is highly regulated, requires multiple certifications and a lot of investment, and still is a very small market compared with flower. 

“Now the approval of flower export has allowed us to really gain traction in Colombia supply, as a high quality, low-cost producer, and the result of it is the multiple contracts we have now in place and we continue to negotiate. Starting November 2022, we expect recurrent revenue with high margins and good profitability.

“This combined with internal decisions that have helped us to reduce our G&A and cash burn makes our company a sustainable and profitable target for investors and we are pretty confident that before the end of the year we will be in a completely different situation.

“We continue supplying internally medical formulations currently approximately 300 per month and growing at 15 per cent per month. Now we are really getting to an interesting point for the company, with a very clear path forward and the possibility to generate profits for our investors.”

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Curaleaf partnership to build platform for German recreational market

The company has entered into a strategic partnership with Germany’s Four 20 Pharma.

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Curaleaf partnership to build platform for Germany's recreational market
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Home » News » Markets and industry » Apollon to acquire world-class research and production facility in Jamaica

Curaleaf has acquired a 55 per cent stake in Four 20 Pharma – a fully EU-GMP and GDP licensed German producer and distributor of medical cannabis with its own product line.

Germany currently represents the largest medical cannabis market in Europe, with a total addressable market of over €200m (~£m) in 2022. This is expected to grow to nearly €1bn by the end of 2024 with the expected legalisation of recreational cannabis, expected to begin in late 2023 or early 2024.

Four 20 Pharma is one of the largest cannabis operators in Germany, with a greater than 10 per cent market share.

Read more: Curaleaf is championing social impact in the cannabis industry

The partnership creates a strategic pathway for Curaleaf to acquire complete control of Four 20 Pharma within two years of the commencement of adult use in Germany. Curleaf has stated that the partnership also ensures alignment between Curaleaf and Four 20 Pharma’s current management team to rapidly build a best-in-class German business and a strong platform for Germany’s eventual adult use market. 

Curaleaf executive chairman, Boris Jordan, commented: “By partnering with Four20 Pharma, Curaleaf’s European business will immediately gain additional critical mass and be in a superior position to capitalise on the accelerating trends in the European cannabis market.

Read more: Curaleaf completes landmark registration of cannabis products in Malta

“The opportunity in Europe cannot be understated, and Curaleaf is uniquely differentiated from other US MSOs via our already significant presence as the largest and most licensed cannabis company in Europe. 

“With cultivation facilities in Portugal, manufacturing facilities in Spain and UK, rapidly growing patient numbers across Europe, particularly in the UK, Curaleaf serves the entire legal cannabis ecosystem and is also poised to capitalise on the adult use opportunity as regulation starts to unlock.

“This strategic transaction further underscores our aspiration to be the major player in the European market and the leading global cannabis company.”

President of Curaleaf International, Miles Worne, said: “Four 20 Pharma is a leading German distributor with a branded product that consumers love. They’ve captured significant market share in Germany by sourcing product from top EU-GMP certified suppliers around the world and building strong connections with German medical consumers by providing the highest quality flower in a namesake branded offering. 

“As such, Four 20 Pharma is uniquely positioned to capitalise on Germany’s conversion from a medical to an adult use market and we’re thrilled to be partnering with their talented management team.”

Managing Partner of Four 20 Pharma, Torsten Greif, commented: “We have been exploring possible partners to stake our claim in the future German and European cannabis markets, and in Curaleaf we know we’ve found the undisputed leader and the best partner. 

“From the beginning of our conversations, it was clear that they supported our strategic vision and respected our autonomy and entrepreneurial approach. Having full access to the tremendous knowledge and assets of the Curaleaf team will accelerate our future growth projects and help drive our company to the next level.”

Managing partner of Four 20 Pharma, Thomas Schatton, added: “Curaleaf shares our values of customer dedication and commitment to product quality, and we are incredibly excited about our future together. 

“The team at Four 20 are thrilled to be able to leverage Curaleaf’s proven R&D expertise to help us continue delivering the best quality products to our medical patients and the promising future  market.”

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MGC Pharma receives first tranche of funding under new $10m financing facility

The financing facility will fund the execution of MGC Pharma’s business commercialisation strategy in the UK and US.

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MGC Pharma receives forst trache of funding from Mercer Street

MGC Pharmaceuticals has confirmed it has received the first funding tranche of US$1.2m under a new US$10 million financing facility with Mercer Street Global Opportunity Fund.

The injection of funding will be used to further MGC Pharma’s business strategy, focused primarily on developing revenue growth through its partnerships with Sciensus Rare in the UK and Europe and AMC in the US.

The Mercer Street Global Opportunity Fund is managed by Mercer Street Capital Partners, a United States-based institutional fund manager and MGC Pharma’s largest shareholder.

The first portion of funding has been received in full and MGC Pharma will now issue 1.32m of convertible notes with a face value of US$1.00 each to Mercer Street. The company will also issue 21,511,545 fully paid ordinary shares to Mercer as part of the agreement.

The US$10m financing facility provides MGC Pharma with access to significant capital to fund the execution of its business commercialisation strategy in the UK and US as well as advance regulatory approvals for the company’s proprietary products in an effort to drive revenue growth, assist in the rollout of the ZAM App and provide funding for the group’s general corporate expenses.

The company will continue to implement “significant” non-revenue driving cost reductions within its operations, including the delay of non-core clinical trials.

Roby Zomer, co-founder and managing director of MGC Pharma, commented: “Mercer’s new US$10m finance facility provides the company with access to funding for MGC Pharma to continue to execute its business strategy of opening up key strategic markets over the next six months. During this period the business strategy will focus primarily on generating revenue growth through our existing relationships with Sciensus Rare in the UK and Europe, and AMC in the USA.

“In addition to its sales growth strategy, MGC is very excited about the potential value that the recent 40 per cent acquisition of the ZAM medical data collection App and its associated machine learning algorithm bring to the company.

“This investment is not only aimed at reducing R&D costs and providing the company with critical proprietary clinical data in the future but also provides the MGC with the potential for a future additional revenue stream and a value-creating asset on the back of the software’s successful implementation and rollout.”

The new US$10m financing facility fully funds MGC Pharma’s current business plan, the company said, and replaces the unused A$9.25 million of the previous funding facility established in September 2021.

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