TORONTO, December 30, 2020 (GLOBE NEWSWIRE) – RAMM Pharma Corp. (including its wholly owned subsidiaries, the “Company” or “RAMM”) (CSE: RAMM), a leader in the field of pharmaceutical cannabinoids and other cannabis-derived cannabis derivatives, is pleased to to announce that the company has acquired 49% of Canapar Corp. (“Canapar”) (the “Canapar Shares”). Canapar shares were acquired from Canopy Rivers Corporation (“Canopy Rivers”), a wholly owned subsidiary of Canopy Rivers Inc. (TSX: RIV) (OTC: CNPOF). Canapar, through its wholly owned subsidiary Canapar SrL (“Canapar Italy”), will be one of the largest vertically integrated cannabis companies in Europe when fully operational. Canapar’s state-of-the-art extraction plant is the largest in Europe and has been tailor-made for the production of active compounds for use in high-quality pharmaceutical, wellness and cosmetic products from its manufacturing platform. production and processing of organic hemp of 1000 hectares based in Italy. . The strategic investment is expected to immediately enhance RAMM and Canapar’s ability to capitalize on the expanding European and global cannabis markets, providing additional opportunities to expand RAMM’s distribution footprint for its portfolio of pharmaceuticals and other products. internationally registered and approved cannabis-based products and additional leverage. Canapar’s significant investment in its vast field of operations and its vertically integrated industrial expertise.
“Canapar is positioned to be a leader in the European cannabis market and this strategic investment gives RAMM a significant presence in Europe, creating a leading and differentiated global platform,” said Jack Burnett, CEO of RAMM.
“We welcome RAMM as a strategic investor in Canapar and are very optimistic about the possibilities of leveraging our respective expertise, our product portfolios and our established presence in a large number of international markets,” said Sergio Martines , CEO of Canapar.
A video overview of Canapar’s operations can be found here and additional information about Canapar and can be found on its website www.canapar.com.
About the European cannabis market
Europe represents one of the largest potential cannabis markets in the world. The cannabis market in Europe is currently valued at US $ 3.5 billion and is expected to reach US $ 37 billion by 2027 with a projected CAGR of 29.6% from 2020 to 2027 (ResearchAndMarkets.com, 2020). European countries are experiencing a transformation in the regulation of the marketing of cannabis and related products, facilitating the cultivation, processing and trade of cannabis products in this region.
Terms of the transaction
Canapar shares were acquired for C $ 7,000,000 pursuant to the terms of a share purchase agreement (the “Agreement”) and represent approximately 49% of the issued and outstanding shares of Canapar on an undiluted basis. . Canopy Rivers is also entitled to additional contingent consideration of CAN $ 2,000,000 payable in cash or issuable in common shares of RAMM, at RAMM’s sole discretion, following the achievement of certain production milestones at the Canapar Italy production plant in Sicily. Pursuant to the terms of the agreement, RAMM was also granted the rights to Canopy Rivers under an investor rights agreement which includes: (i) the right to nominate a candidate for the current board of directors of Canapar made up of three people (or two candidates if the board size increases to six or more); (ii) Ramm’s right to maintain its pro-rated percentage of Canapar ownership in connection with future financings; and (iii) a call option giving RAMM the right to purchase 100% of Canapar’s interest in the companies of its beneficiaries for the greater value of C $ 200,000,000 or eight times EBITDA.
About Canapar Corp.
Canapar, with its wholly owned subsidiaries in Europe, is an Italy-based manufacturer and processor of CBD oil and isolates, which are increasingly used as an input in new commercial products in the healthcare and well-being. Canapar has obtained over 1,000 hectares of hemp through its outsourcing model of agriculture and has entered into an academic partnership with the Department of Agriculture of the University of Catania. Canapar is also advancing its CBD extraction and processing capabilities with its new facility and plans to process 600 metric tonnes of hemp biomass per year into CBD isolates and derived products for distribution in Europe after commissioning. its mining machines. With the demand for products containing natural active ingredients derived from plant extracts increasing dramatically, Canapar plans to develop CBD cosmetics, skin care and beauty products for the Italian cosmetics market, which is the fourth largest. largest market of this type in Europe, as well as the world market, which provides a strong demand for “Made in Italy” brands.
About RAMM Pharma Corp.
Led by renowned experts in the cannabis industry and supported by successful pioneers in the cannabis industry, RAMM is a leader in the field of cannabinoid pharmacology and product formulation for pharmaceutical based cannabis and other cannabis products. Founded in 1988 in Montevideo, Uruguay, the company is a well-established pharmaceutical and medical company that has developed medicinal products based on plant-based cannabinoids that are registered and medically approved. The company currently has several approved and registered products authorized for sale in Uruguay and compassionate use in several Latin American countries, as well as a portfolio of new products at various stages of approval and development manufactured in the United States. state of the art of the company. Manufacturing practice (GMP) certified cannabis formulation facility. In addition to its cutting-edge cannabis business, the Company operates a successful pharmaceutical, cosmetic and nutraceutical development and medical services business that has served the local market for 30 years.
RAMM Pharma Corp. includes wholly owned subsidiaries Medic Plast SA, Yurelan SA, Glediser SA and Ramm Pharma Holdings Corp.
Additional company information is available at www.rammpharma.com.
For more information, please contact:
+598 2513 9958
Caution regarding forward-looking information
This press release contains “forward-looking information” and “forward-looking statements” (collectively, “forward-looking statements“) within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as of the date of this press release Any statement involving discussion of predictions, expectations, beliefs, plans, projections, goals, assumptions, future events or performance (often but not always using expressions such as “s ‘expect’, or ‘does not expect’, ‘is expected’, ‘anticipates’ or’ does not anticipate ‘,’ plans’, ‘budget’, ‘planned’, ‘forecast’, ‘estimates’,’ believes “or” intends “or variations of these words and expressions or stating that certain actions, events or results” may “or” could “,” would “,” could “or” will “be supposed to occur or be realized) are not statements of historical fact and few may be forward-looking statements. In this press release, forward-looking statements relate to, among other things, the strategies and objectives of the company, and future expansion plans.
These forward-looking statements are based on reasonable assumptions and estimates of the management of the company at the time these statements were made. Actual future results may differ materially as forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company to differ materially from any results, performances or achievements. futures expressed or implied by these forward-looking statements. These factors, among others, include: the expected benefits of the acquisition of Canapar shares for the company and its shareholders; the potential for future growth of the company on a post-acquisition basis; the commissioning of Canapar Italy’s extraction machines; the effectiveness of the company’s product offerings; expected timelines associated with the production, deployment and availability of the Company’s products; the ability to meet increased demand for the company’s products; changes in the prices of required goods; the impact of COVID-19 on the workforce, suppliers, partners, customers and other critical resources of society and the effect these impacts, if they occur, would have on the business and the operations of the company; potential for future growth of the company; fluctuations in general macroeconomic conditions; fluctuations in the securities markets; expectations regarding the size of the Uruguayan, Latin American, European and international markets for medical and recreational cannabis and changes in consumption patterns; the company’s ability to successfully achieve its business objectives; expansion plans; political and social uncertainties; inability to obtain adequate insurance to cover risks and dangers; and the presence of laws and regulations that may impose restrictions on the cultivation, production, distribution and sale of cannabis and cannabis-related products in Uruguay or abroad; and employee relations. Although the forward-looking statements contained in this press release are based on what the management of the company believes or believed at the time to be reasonable assumptions, the company cannot assure shareholders that actual results will be consistent with these forward-looking statements. because there may be other factors that cause results not to be as expected, estimated or expected. Readers should not place undue reliance on any forward-looking statements and information contained in this press release. The Company assumes no obligation to update forward-looking statements of beliefs, opinions, projections or other factors, if they change, except as required by law.
No stock exchange, securities commission or other regulatory authority has approved or disapproved of the information contained in this document.