STENOCARE Comments On The Business Perspective Of Its Danish Indoor Cultivation Facility

Following the completion of the Danish facility upgrade, STENOCARE has shared three video tours from inside the facility. The tours demonstrate how the indoor facility is created as a building inside a building to optimize control of the climate and minimize potential risk of contamination. This is critical to be able to supply pharma-grade materials for medical cannabis products and to comply with the strict requirements from the medicine agencies.

STENOCARE explains that with the completion of their Danish indoor cultivation facility, the Company now has capacity to cover its expected supply needs for the next 4-5 years, corresponding to potential annual commercial value of DKK 150 mill from the facility alone. This assessment does not include the potential for additional commercial value from imported products.

Full control over product supply: The indoor cultivation facility is in operation today and requires no additional major investments to deliver premium quality medical cannabis materials. The facility is designed and able to cover STENOCARE’s entire capacity needs for the next 4-5 years – even if it is decided not to leverage capacity from STENOCARE’s product suppliers. This means that the Company has complete control of the supply situation, of course subject to having the necessary approvals and licenses.

Capacity to create a large European market leader: Based upon a continuation of the current market price levels for medical cannabis oil products, and assuming production is at full capacity, then the potential annual commercial value from the STENOCARE’s facility alone corresponds to a value of around DKK 150 million. Please notice that this should not be seen as a forecast or guidance for 2022 or 2023.

Agile and designed to scale: Most European markets are in their infancy and will only be able to generate small scale demand in the near term. At the same time, most industry experts agree that STENOCARE’s European home market will become the world’s biggest market for medical cannabis. In anticipation of this built up of demand, the indoor facility has been uniquely designed to cope with anything from small orders to large consistent supply. Also, with its strategic suppliers, STENOCARE is able to adapt to market growth beyond its own cultivation facility and will be able to offer a broad product portfolio for patient’s treatment.

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