Indiva Enters into Agreement to Acquire License in Denmark and Creates Gateway to European Market

Published: November 21, 2018

Indiva Enters into Agreement to Acquire License in Denmark and Creates Gateway to European Market

Indiva Limited has signed a non-binding letter of intent with AEssense Europe for the acquisition of 100% of a medical cannabis cultivation and handling license in Denmark under the Danish Medicines Agency development scheme. AEssense Europe received its license from the Danish Medicines Agency on January 12, 2018. The acquisition will be funded with a combination of 1.6 million Indiva common shares plus US$1.1 million in cash, payable over three years.

Indiva will pursue the cultivation and worldwide distribution of EU-GMP certified medical cannabis and cannabis-derived products. Indiva intends to incorporate a wholly-owned subsidiary, Indiva Europe, which will be responsible for financing and managing the European operations. In a continuing collaboration with AEssense, Indiva Europe plans to construct an indoor grow facility based on AEssense’s proprietary AEtrium fully automated aeroponic grow platform, which will enable Indiva to produce consistent, ultra-clean, premium pharmaceutical quality cannabis product compliant with GACP and EU-GMP standards. Sites have been identified to begin construction of a 1,000 square foot research lab as part of the production facility, with ample expansion room to create facilities of such scale as to be able to serve Danish patients as well as the European market with high-quality cannabis products.

Indiva will have the exclusive right to all cannabis-related production. Subject to applicable regulatory approvals, Indiva will also leverage the Denmark license for the importation of EU-GMP cannabis into the Danish and European markets.

Indiva has identified Europe as a key emerging market in cannabis, estimated at some $80-100 billion at maturity1. Europe is home to greater than 500 million people and the growing acceptance of medical cannabis is leading to significant growth in registered patients.

“We are very excited about entering the European market,” said Niel Marotta, CEO of Indiva. “This acquisition of a Danish license and collaboration with AEssense provides a gateway to the EU and the tremendous growth expected in the European cannabis market. Indiva is now positioned to produce and distribute cannabis and cannabis derived products under some of the most stringent quality rules in the world. We look forward to further strategic partnerships to continue to develop this entry into a growing global market.”

“We are looking forward to expanding our working relationship with Indiva from Canada to Denmark,” said Bob Chen, CEO of AEssense. “Our new Danish research laboratory will allow AEssense to continue to progress the cutting-edge technologies that make our automated aeroponic cultivation platform unique and deliver superior quality and higher yields for our customers. We believe the AEtrium platform will be the new standard for producing a premium, repeatable output for the Danish market and beyond. Our collaboration with Indiva including access to a research location on-site will enable both companies to learn and grow, providing an optimal structure for information sharing and constant improvement.”