RAMM Pharma Corp., an innovator in plant-derived cannabinoid pharmaceutical and other cannabis-based products, is pleased to announce a C$3 million investment in Canapar Corp. through its participation in Canapar’s secured convertible note offering (the “Offering”). Further to its news release dated December 30, 2020 announcing its acquisition of 29,833,333 shares of Canapar, representing an approximate 49% interest, this subscription further strengthens Ramm’s strategic relationship with Canapar.
Based in Italy, Canapar is positioned to become one of Europe’s largest vertically integrated Cannabis companies. Canapar’s state of the art extraction facility is the largest in Europe and has been custom designed to produce active compounds to be used in high-quality pharmaceutical, wellness, and cosmetic products from its 1,000-hectare organic hemp production and processing platform. The strategic investment is expected to immediately enhance RAMM and Canapar’s ability to capitalize on the rapidly expanding European and global cannabis markets, provide additional distribution opportunities for RAMM’s portfolio of internationally registered cannabis-based products and leverage Canapar’s significant investment in its vertically integrated operation to provide economies of scale and supply chain control.
- Transformational acquisition to enter the European cannabis market and introduce RAMM’s best-in-class cannabinoid pharmaceutical and other product formulations to a population of 750M+
- Canapar is Europe’s first fully integrated CBD company with approximately $33M invested to date and is positioned to become one of Europe’s largest CBD extraction companies with sales commencing in Q1 2021.
- Significant supply contracts in place including a 5-year agreement for €38.5M (€7.7M per year) with a leading ingredient company for full spectrum CBD oil. Additional contracts being actively pursued and negotiated.
- Multiple source B2B & B2C revenue strategy in place to establish Canapar as a leading European supplier of high-margin CBD Active Pharmaceutical Ingredients (APIs) and wellness products. To date Canapar has commercialized a full line of wellness products (35 SKUs) under its house-brand Marishanti. and has opened 2 Marishanti branded retail stores
- Canapar is led by a globally renowned team with extensive entrepreneurial and leadership experience in pharmaceutical licensing, the development and commercialization of consumer products, deep industry relationships, as well as distinguished scientific and agricultural and expertise.
- Canapar’s extraction facility is designed to meet EU-GMP and AIFA (Italian Medicine Agency) standards, with certification expected in 2021. As the largest pharma-grade extraction facility in Europe, with 600,000kg biomass extraction capacity and 10,300kg CBD isolate production capacity annually, industry leading production costs to be realized.
- Strategically located in Italy, one of the strongest European cannabis markets, and the European country with the most progressive regulatory framework for hemp cultivation and CBD extraction. Made-in-Europe production protected from tariffs and protectionist measures
- Ramm continues to have a strong financial position with net working capital of approximately $18.8 million ($0.19 per share) including $15.4 million ($0.15 per share) of cash and no debt, post-acquisition and investment.
“This investment will accelerate Canapar’s ability to establish itself as a leader in the European market and the realization of the strategic benefits to RAMM,” stated Jack Burnett, Chief Executive Officer of RAMM.
“Canapar is now positioned to achieve its objective of becoming Europe’s largest CBD extraction company through leveraging our low-cost outsourced farming model and purpose-built extraction facility to provide made-in-Italy, GMP-certified CBD ingredients, and premium hemp wellness products,” stated Sergio Martines, Chief Executive Officer of Canapar.