RAMM Pharma, a cannabis-based pharmaceutical firm with merchandise in a number of Latin American nations, has purchased a 49% stake within the Sicilian CBD processing firm Canapar.
Primarily based in Toronto, RAMM bought the shares from the cannabis venture-capital agency Cover Rivers.
Underneath the settlement, RAMM paid $7 million money to Cover Rivers to purchase somewhat greater than 29.8 million widespread shares in Canapar, Cover Rivers mentioned in a press release on the finish of final month.
An extra $2 million is because of be paid “upon achievement of sure operational milestones” both in money or widespread shares in RAMM, Cover Rivers mentioned.
Canapar is a Sicily-based producer and processor of CBD oil and isolates that sources its biomass from farmers and native corporations underneath its subsidiary Canapar Farming in Southern Italy.
RAMM referred to as the deal a “transformational acquisition to enter the European cannabis market.” It mentioned in a press release final week that Canapar had “vital provide contracts in place,” together with a 5-year settlement for 38.5 million euros ($46.8 million) with a number one ingredient firm for full spectrum CBD oil.
Canapar’s extraction facility is just not but licensed to satisfy EU-GMP and AIFA (Italian Drugs Company) requirements, RAMM mentioned. The certifications are anticipated someday this yr.
RAMM is energetic in CBD prescribed drugs in South America, producing the drug Epifractan in Uruguay for the native medical market and the broader regional market. It has exported greater than $200,000 of the product to Argentina, Brazil and Peru, largely throughout 2020.
Cover Rivers’ resolution to promote the shares got here greater than two years after the corporate’s first funding in Canapar in the summertime of 2018. The corporate mentioned it later led a $25 million financing in early 2019.
Cover Rivers trades on the Toronto Inventory Alternate (TSX) underneath the image RIV and on over-the-counter markets underneath the image CNPOF.
RAMM Pharma trades on the Canadian Securities Alternate as RAMM.
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