Acquisition Provides Khiron with a European EU-GMP Manufacturing and Distribution Center for Medical Cannabis and Other Pharmaceutical Products
- Acquisition of Pharmadrug Production GmbH provides Khiron with direct access to German pharmacies and increased gross margins for its products
- Once the acquisition is complete, Khiron will continue sales of its current products and expand its portfolio, expecting higher gross margins and a stronger market presence, with its own sales force and network of pharmacies
TORONTO, August 2, 2022 /PRNewswire/ – Khiron Life Sciences Corp. (“Khiron” or the “Company”) (TSXV: KHRN) (OTCQX: KHRNF) (Frankfurt: A2JMZC), a world leader in medical cannabis through Europe and Latin America, announces that it has completed the acquisition of Pharmadrug Production GmbH (“Pharmadrug GmbH” or the “Target”) from Pharmadrug Inc. (CSE: PHRX) (OTC: LMLLF) (“Pharmadrug”). The acquisition was previously announced on May 31, 2022and was made in accordance with the terms disclosed.
With the completion of the acquisition, Khiron has expanded its presence in Europe with an EU GMP certified manufacturer and wholesaler and acquired a European pharmaceutical manufacturing and distribution center. The acquisition is an optimal complement for Khiron in Europe and is part of its asset light economic strategy. As Khiron Europe’s own wholesaler, the target company will promote and sell Khiron’s products directly to German pharmacies, enabling Khiron to control the entire value chain in the country and earn a gross margin. increased.
With this acquisition, Khiron is able to accelerate the expansion of its medical product portfolio with additional proprietary flower varieties that are in market demand and a THC-dominant full-spectrum extract that combines the medicinal properties and areas application of the established THC isolate. formulations (dronabinol) with the specific benefits of a full-spectrum extract. Additional new products are already in the works, which will include the full spectrum of therapies with medical cannabis to be able to offer the right therapy to each patient, and more details will follow soon.
Franziska Katterbach, President of Khiron Europe, said: “We are very pleased to have now received all the necessary permits and licenses as part of the acquisition and integration of the target and to be able to continue our growth in Europe at an accelerated pace with total control of the value chain up to the pharmacy. We are very happy to take advantage of Target’s excellent infrastructure and experienced team, which will enrich us professionally and personally. After the opening of our ZERENIA clinic in London last year and now adds a powerful asset in Germanyour European force is complete and ready to accelerate our sales in Germany. We now plan to sell our products faster and with higher margins directly to German pharmacies, which will save distribution costs. A first signal in this direction is the imminent expansion of our medical portfolio for European patients. These are products made exclusively in Europe, and our medical portfolio now covers the full spectrum of chemotypes and forms of administration. We will provide more detailed information about our new products in due course.”
Pursuant to the terms of the Acquisition, in consideration for acquiring all of the issued and outstanding shares of Target, Khiron issued to Pharmadrug 5,500,000 common shares of the Company (at a deemed price of $0.16 per share) and 468,750 additional common shares in connection with certain closing adjustments for a total of 5,968,750 common shares, as well as a non-interest bearing promissory note which was adjusted downward in accordance with certain closing on a total capital amount of $974,137. The promissory note is payable one year from the date of issue in cash or, at Khiron’s option, by the issuance of additional Khiron shares. Any issuance of shares of Khiron upon conversion of the promissory note will be subject to the prior approval of the TSX Venture Exchange.
A total of 5,000,000 Khiron shares issued in connection with the closing are subject to a lock-up agreement, under which Pharmadrug cannot transfer such shares without the consent of Khiron, a quarter of the total number of shares tendered shares being released every 90 days following the closing date (all these shares being released 360 days after the closing date).
About Khiron Life Sciences Corp.
Khiron is a leading vertically integrated international medical cannabis company with core businesses in Latin America and Europe. Leveraging medical health clinics and proprietary telemedicine platforms, Khiron combines a patient-centric approach, physician education programs, scientific expertise, product innovation and cannabis operations to drive prescriptions and brand loyalty with patients around the world. The Company has a commercial presence in Colombia, Peru, Germany, UKand Brazil and is well positioned to begin sales in Mexico. The Company is led by Co-Founder and Chief Executive Officer, Alvaro Torresand an experienced and diverse management team and board of directors.
Visit Khiron online at https://investors.khiron.ca.
Linkedin https://www.linkedin.com/company/khiron-life-sciences-corp/
About Pharmadrug Production GmbH
Pharmadrug GmbH has been active worldwide for more than 30 years as a manufacturer and wholesaler of drugs and active pharmaceutical ingredients, as well as a licensee to handle narcotics in Germany. Pharmadrug GmbH is EU-GMP (Good Manufacturing Practice) and EU-GDP (Good Distribution Practice) certified, meeting European directives for the highest quality standards.
Caution Regarding Forward-Looking Information
This press release may contain “forward-looking information” within the meaning of applicable securities laws. All information contained in this document that is not historical in nature constitutes forward-looking information. The forward-looking information contained in this press release may include statements relating to the synergies and benefits expected for the Company from the acquisition of the Target as well as statements relating to the synergies expected from the Target on the Company’s activities, and their impact on the Company’s business strategy. The forward-looking information and statements contained in this press release reflect management’s current beliefs and are based on information currently available and on assumptions that management believes are reasonable. These assumptions include, but are not limited to, the expected benefits of Khiron’s business as a result of the target acquisition, the expected synergies resulting from the acquisition, and assumptions regarding market opportunities in the jurisdictions in which the Company and Target operates and where it seeks to operate.
Although management believes that its expectations and assumptions are reasonable, forward-looking information is always subject to known and unknown risks, uncertainties and other factors, many of which are beyond management’s control, which may cause actual results will differ materially from those expressed or implied by such forward-looking information. These risks and uncertainties include, but are not limited to, the following: general economic conditions, adverse capital market conditions, political uncertainties, counterparty risk, inability to obtain required regulatory requirements and approvals, inability to maintain required permits and licenses, business integration risks, and other risk factors discussed in Khiron’s most recent Annual Information Form which is available on Khiron’s SEDAR profile at www.sedar.com.
Due to the foregoing and other risks and uncertainties, readers are cautioned not to place undue reliance on the forward-looking information contained in this press release. Readers are further cautioned that the foregoing risks and uncertainties are not exhaustive and that there may be other risks and uncertainties, not currently known to the Company’s management, which could cause actual results to differ materially. and those expressed or implied by the forward-looking statements contained in this press release. The forward-looking information contained in this press release is expressly qualified by this cautionary statement. Khiron disclaims any intention to update or revise any forward-looking information disclosed herein, whether as a result of new information, future events or otherwise, except as required by law.
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SOURCEKiron Life Sciences Corp.
