TORONTO – RAMM Pharma Corp. (including its wholly owned subsidiaries, the “Company” or “RAMM”) (CSE: RAMM), a leader in plant-derived cannabinoid pharmaceutical and other cannabis-based products, is pleased to announce that the Company has acquired 49% of Canapar Corp. (“Canapar”) (the “Canapar Shares”). The 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 Europe’s largest vertically integrated Cannabis companies when fully operational. Canapar’s state of the art extraction plant is the largest in Europe and has been custom designed for the production of active compounds to be used in high-quality pharmaceutical, wellness and cosmetic products from its 1,000-hectare Italian-based 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 opportunities to expand RAMM’s distribution footprint for its portfolio of internationally registered and approved pharmaceutical and other cannabis-based products and further leverage Canapar’s significant investment in its extensive vertically integrated operation and industry expertise.
“Canapar is positioned to be a leader in the European Cannabis market and this strategic investment provides RAMM with a significant presence in Europe creating a prominent and differentiated global platform,” stated Jack Burnett, Chief Executive Officer of RAMM.
“We welcome RAMM as a strategic investor in Canapar and are very optimistic about the opportunities to cross-leverage our respective expertise, product portfolios and established presence in an expansive number of international markets”, stated Sergio Martines, Chief Executive Officer of Canapar.
A video overview of Canapar’s operations can be found here: https://www.youtube.com/watch?v=ELPOrL9-LaM&feature=youtu.be 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 globally. The Europe cannabis market is currently valued at US$3.5 billion and expected to reach US$37 billion by 2027 with an anticipated CAGR of 29.6% from 2020 to 2027 (ResearchAndMarkets.com, 2020). European countries are experiencing a transformation in the regulations for marketing cannabis and related products, facilitating easier cultivation, processing, and trade of the cannabis-derived products across this region.
Terms of the Transaction
The 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 a non-diluted basis. Canopy Rivers is also entitled to additional contingent consideration of C$2,000,000 payable in cash or issuable in common shares of RAMM, at the sole discretion of RAMM, on the achievement of certain production milestones at Canapar Italy’s production facility in Sicily. In accordance with the terms of the Agreement, RAMM was also assigned Canopy Rivers’ rights under an investor rights agreement which includes: (i) the right to designate one nominee to Canapar’s current three person board of directors (or two nominees if the size of the board increases to six persons or more); (ii) the right of Ramm to maintain its pro rata ownership percentage of Canapar in connection with future financings; and (iii) a call option providing RAMM with the right to purchase 100% of Canapar’s interest in its investees companies 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 into new commercial products in the health and wellness industries. Canapar has secured more than 1,000 hectares of hemp through its outsource farming model and entered into an academic partnership with the University of Catania’s Department of Agriculture. Canapar is also advancing its CBD extraction and processing capabilities through its new facility and is expecting to transform 600 metric tons of hemp biomass annually into CBD isolates and derivative products for distribution in Europe following the commissioning of its extraction machinery. With demand for products that contain natural active ingredients derived from plant extracts increasing significantly, Canapar plans on developing CBD-infused cosmetics, skincare, and beauty products for the Italian cosmetics market, which is the fourth largest such market in Europe, as well as the global market, which provides strong demand for “Made in Italy” brands.
About RAMM Pharma Corp.
Led by renowned cannabis industry experts and backed by successful pioneers in the cannabis sector, RAMM is a leader in the field of cannabinoid pharmacology and product formulation for cannabis-based pharmaceuticals and other cannabis-based products. Founded in 1988 in Montevideo, Uruguay, the Company is a well established pharmaceutical and medical product business that has developed medically registered and approved plant-derived cannabinoid pharmaceutical products. The Company currently has multiple approved and registered products that have been authorized for sale in Uruguay and compassionate use in several Latin American countries, as well as a pipeline of new products in various stages of approval and development produced in the Company’s state of the art Good Manufacturing Practice (GMP) certified cannabis formulation facility. Further to its industry leading activities in the cannabis sector, the Company operates a successful pharmaceutical, cosmetic and nutraceutical product development and medical services business which has been servicing 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 information about the Company is available at www.rammpharma.com