Khiron Life Sciences Corp. (TSXV: KHRN) announced today the plan to acquire Pharmadrug GmbH, a German cannabis subsidiary of PharmaDrug Inc. (CSE: PHRX). The total consideration for the transaction is estimated at $2.0 million.
“This acquisition will provide us with a European manufacturing and distribution centre for cannabinoid-based medicines with EU-GMP certification,” said Khiron Europe President Franziska Katterbach.
The transaction will partially be satisfied with the issuance of 5.5 million Khiron common shares at $0.16 per share. The Canadian cannabis firm will also issue a non-interest-bearing promissory note for $1.1 million which will be payable within one year after closing either via cash or company shares.
The companies expect the acquisition to close in July 2022, subject to regulatory approvals and customary closing conditions.
The German subsidiary carries a Schedule I European Union narcotics license, an EU-GMP certification, and an EU-GDP certification–fulfilling the region’s standards in manufacturing and distributing pharmaceutical products.
The acquisition plans follow Khiron’s first foray into the European market back in November 2021 through the opening of its first Zerenia Clinics UK in London.
Khiron Life Sciences last traded at $0.17 on the TSX Venture.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.