Canada's Kaneh Bosm to buy Slovenian medical cannabis firm Farmakem

Under the terms of the agreement, Kaneh Bosm will issue 19,133,333 shares and pay consideration of $985,000 (846,800 euro) over the course of several relevant milestones, the Canadian company said in a statement on Thursday.

The transaction will enable Farmakem to expand its distribution channels on a global scale and leverage off the other companies within Kaneh Bosm’s network, the company added. 

"This acquisition provides a vertically integrated product line manufactured in the EU 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 utilising multiple delivery systems, are very exciting," the CEO of Kaneh Bosm, Eugene Beukman, said.

Farmakem together with wholesaler Salus Ljubljana was appointed as the chosen supplier of cannabidiol-based product Cebexan to the Ljubljana University Clinical Centre for a term of up to four years starting January 10.

"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," Bernard Fridrih, CEO of Farmakem said.  

Farmakem has recently entered into a distribution agreement with an Italian distributor specialising in cannabidiol products and negotiations are presently underway for distributors from Germany and other EU countries.

The Slovenian company focuses on research and development (R&D), production, supply, distribution and commercialisation of active pharmaceutical ingredients, medical devices and food supplements within the medical cannabis/hemp industry.

($=0.8596 euro)