Mr. Eugene Beukman reports
KANEH BOSM ADDS SLOVENIA CBD PRODUCTION TO COLOMBIA, GREECE, LESOTHO LICENSES
Kaneh Bosm Biotechnology Inc. has entered into an agreement to acquire 100 per cent of Farmakem Ltd.
The transaction enables Kaneh Bosm to expand its existing product lines, distribution channels and sales network across greater Europe.
This transaction marks another global acquisition for Kaneh Bosm, further developing its global portfolio and extensive network.
Farmakem is a revenue-generating licensed medical cannabis company based in Slovenia. Its focus is on research and development (R&D), production, supply, distribution, and commercialization of active pharmaceutical ingredients, medical devices and food supplements within the medical cannabis/hemp industry.
Farmakem has obtained licences for the international wholesale, import and export of more than 150 APIs (including cannabidiol (CBD) and some narcotics and psychoactive substances), medical devices and food supplements. It is the first company in Slovenia to obtain approval to import medicinal cannabis and delta-9 tetrahydrocannabinol (THC) of natural origin.
Farmakem has a range of GMP (good manufacturing practice) products with various novel delivery technologies for both the human and veterinary market currently for sale and in R&D stages. With a budget of $1.3-trillion in health care spending, European government-subsidized health care systems are set to become the largest single market for cannabis in the world as the liberalization of regulations in favour of plant-based medicine continue.
The acquisition of Farmakem represents another significant stride for the company within the European marketplace, which is a priority for the company.
Kaneh Bosm's wholly owned subsidiary, Marathon Global Inc., has agreements in place with a European-based pharmaceutical distributor to procure and distribute medical cannabis products and all cannabis derivatives in approved countries within its distribution network. This partnership will enable Farmakem to expand its distribution channels on a global scale and leverage off the other companies within Kaneh Bosm's network.
Eugene Beukman, chief executive officer of Kaneh Bosm, said: "This acquisition provides a vertically integrated product line manufactured in the EU (European Union) to help build out a robust portfolio of offerings into our network of circa 35,000 pharmacies. The Cebexan and Dronaxan product families within Farmakem as well as new products utilizing multiple delivery systems are very exciting."
Bernard Fridrih, chief executive officer of Farmakem, said, "We are highly enthusiastic about bringing Farmakem under the Kaneh Bosm umbrella, and the acquisition allows Farmakem to tap into their extensive network whilst allowing them to leverage off the scope and breadth of our products and distribution in Eastern Europe."
Farmakem's existing research and distribution agreements
Farmakem, together with Salus Ljubljana, was appointed as the chosen supplier of CBD (Cebexan) to the University Clinical Centre, Ljubljana, for a term of up to four years (one year plus three years), which commenced on Jan. 10, 2018.
Farmakem entered into several exclusive agreements with Slovenia's second-largest wholesaler, Salus, operating throughout Slovenia and the Balkans. Farmakem intends to further expand into this market for the development, production and sale of CBD and other cannabis products through the rights attributed in these agreements.
Farmakem has entered into a distribution agreement with an Italian distributor specializing in CBD products; negotiations are presently under way for distributors from Germany and other EU countries.
Farmakem has an exclusive agreement with a Czech partner for the supply of starting material required for the manufacture of Cebexan and an exclusive agreement with a Czech partner for the production of Famarkem's GMP pharmaceutical-grade products.
Terms of the acquisition
Under the terms of the agreement, the company will issue 19,133,333 shares and pay consideration of $985,000 over the course of several relevant milestones.
A finder's fee will be payable on this transaction.
About Kaneh Bosm Biotechnology Inc.
Kaneh Bosm specializes in the acquisition of marijuana projects and cannabis-related companies. The company, through its subsidiaries, has agreements in place for European-based pharmaceutical distribution; working interests in industrial hemp licences in Greece; and licences to cultivate, produce, hold, sell and export cannabis and its byproducts in Colombia and the Kingdom of Lesotho, Africa.
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