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Wednesday, Jun 12, 2024
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Business

Khiron to acquire EU-GMP-certified German pharmaceuticals manufacturer

The transaction is set to close on or before the end of July

Khiron starts selling cannabis in Switzerland, expands portfolio in Germany and UK
Photo via Khiron

Khiron Life Sciences Corp. (TSXV: KHRN) (OTCQX: KHRNF) (Frankfurt: A2JMZC) is set to acquire a certified German pharmaceutical manufacturer and expand its presence in Europe.

On Tuesday, the Toronto-headquartered company with primary operations in Colombia announced it entered into an agreement to acquire Pharmadrug GmbH from its parent company PharmaDrug Inc. (CSE:PHRX) (OTC:LMLLF).

Pharmadrug is an EU-GMP and EU-GDP certified decades-old manufacturer and wholesaler of medicinal products and active pharmaceutical ingredients.

Under the agreement, Khiron will acquire all the shares of Pharmadrug for a promissory note issued at closing and 5.5 million Khiron shares at a price of $0.16.

The promissory note will total $1.1 million, will carry no interests and will be repayable one year from the date of issue in cash or in additional shares.

The transaction is set to close on or before the end of July but is still subject to customary closing conditions such as the approval of the TSX Venture Exchange.

Khiron stock went up by 6.06 per cent on Tuesday to $0.18 on the Canadian Ventures Exchange.

Read more: Khiron ups revenue by 60% to $12.8 million year-over-year

Read more: 92% of patients report improvements in chronic pain after using cannabis oil: Khiron study

President of Khiron Europe Franziska Katterbach said the acquisition will have a direct positive impact on the company’s revenues and higher gross margins.

“The long-established German company will be instrumental in expanding Khiron’s product portfolio with new dosage formats and bringing Khiron’s full-spectrum extracts to Germany and the United Kingdom to grow the patient base,” Katterbach said.

“Our team in Europe is excited to join forces with new colleagues from Pharmadrug GmbH, with their valuable expertise in the German pharmaceutical market.”

 

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