Operational Overview

Operational Overview

Medican, founded in October 2017, is a licensed pharmaceutical medical cannabis company headquartered in Helsinge in Denmark. Medican was in December 2017 one of the first Danish companies to obtain an authorization to cultivate medical cannabis following new legislation in Denmark. In July 2020 Medican became the fourth Company to obtain a GACP and EU-GMP Cannabis bulk license, which gives the opportunity to sell and export medical cannabis products. The Company will provide patients with the highest quality of medical cannabis. The primary markets are Denmark, United Kingdom and Germany. The Company is also present in Uruguay, South America, through a subsidiary named Nube Serena B V, of which Medican owns app. 60 percent. During the coming years, the Company aims to grow into a leading cannabis supplier within the European market and to extend its presence in South America, primarily through export to Brazil, Paraguay and Israel. Still, Medican’s initial focus lies within northern Europe, and the Company is actively working to secure partnerships and operations within that area to exploit the current trends of new legislations regarding medical cannabis.

Medican has developed a very strong strategy with production and cultivation of high quality in-door medical cannabis out of Denmark with distribution to the two largest markets in Europe, Germany and United Kingdom. Medican’s strategy is to primarily handle distribution through owned import- and distribution companies and thereby securing the highest possible transparency. In Germany, Medican has established itself through a 90% owned Medican Pharma GmbH and 25% owned Medizinalhanf GmbH.  With Medizinalhanf based in Hamburg and Medican Pharma based in Frankfurt Medican has positioned itself in very strong areas in the largest market in Europe.

Medizinalhanf, which holds a German wholesale license (GDP license) to sell consumer ready products has in the last year been selling products from Bedrocan awaiting products from Medican. Medican Pharma has applied for a wholesale license and an EU GMP Import license which allows the company to handle and produce cannabis products as well as selling consumer ready goods. These licenses are expected in 2020.

In the United Kingdom the Company has established Medican Pharma Ltd. and been following the development in legislation closely – since the spring of 2020 the possibilities to export products to the UK and the company is in the process of planning organization and strategy.

The Company was founded and is currently managed by a team with great experience from the international medical cannabis market and with a proven track record of building international growth businesses. Medican has been able to recruit key personnel with a broad experience and previous roles within life science, finance, law, and project management, from both start-ups and already listed companies.

Mission

Medican’s mission is to consistently provide European patients with medical-grade cannabis products held to the highest standard of quality.

Vision

Medicans vision is to improving quality of life for patients by cultivating consistent, high-quality medical cannabis with compassion and integrity.

Strategy

Medican’s strategy is the cultivation of high end in-door medical cannabis. Distribution and sales will initially be focused on Germany and United Kingother European markets when legalized. Sales and distribution will primarily take place through Medican’s own associated distribution companies in the specific countries for Medican to secure transparency. Initial sale is estimated to take place in 2021.

OPERATION

At present, the Company has a Danish indoor cultivation area of 3.000 sq. m and 1.000 sq. meter of EU GMP manufacturing and has already produced several batches in the development phase. The production facility is of state-of-the-art quality to maximize output and limiting costs and is ideally located for export with direct access to the Danish as well as the other key European markets.

Percent stake 25%

Aureum A/S

Founded in 2018 Aureum A/S s currently building a extraction facility in Lynge, Denmark. Aureum aims to offer a complete solution within the manufacturing of medical cannabis extracts. More specifically, Aureum A/S uses its equipment and knowledge for the processing of medical cannabis and industrial hemp into extracts and oil. The company offers two solutions, one outsourcing solution for licensed cannabis cultivators in Europe and B 2 B sale of consumer-ready cannabis oil and raw extracts. Aureum A/S has an EU GMP production facility for bulk production and received its first cultivation and handling license in May 2019.

Percent stake 25%

Medizinalhanf GmbH

Medizinalhanf GmbH was founded in 2017 and is since April 2019 GDP Certified and approved for import and distribution of medical cannabis in Germany. Additionally, Medizinalhanf GmbH has already established existing distribution channels with over 400 pharmacies and has developed a good understanding of the German market. Their current facility includes a complete distribution center equipped with vaults and other necessary equipment. The company offers both wholesale and production and are constantly working on expanding its quality management system to rapidly meet the growing interest for research within the area.

Percent stake 90%

Medican Pharma GmbH

Medican Pharma GmbH was established in 2019 and is a Frankfurt-based distributor owned to 90 % by Medican and the remaining 10% owned by the company managing director Morten Brandt. Medican Pharma GmbH was first and foremost established to control distribution and to obtain higher future prices on the German market. Medican Pharma GmbH act as Medican’s preferred distributor of products in Germany and is operated by an experienced pharma and cannabis team.

This company was established to secure that Medican has control of distribution in Germany.

Percent stake 100%

Medican Pharma Ltd

Medican Pharma Ltd was established in 2018., The main focus of the company was to research the UK’s overall market potential for medical cannabis and export from Denmark. The research has been based on three pillars, legislative framework, and development around the cannabis industry, possibilities for import and distribution hub. Leglislation has been developing in a positive direction and Medican is currently planning the strategy and organization.

Percent stake 60%

Nube Serena B V

Established in 2016 Nube Serena B.V. is an Uruguayan producer of Cannabis. As of today, the company owns a cultivation license and 75 acres of land with the potential to supply global markets. Via over 70 000 square feet of greenhouses and an ideal climate for outdoor growing, Nube Serena B.V. could offer a low cost and large-scale production. Moreover, Nube Serena B.V. operates via its subsidiary Nube Serena SA which in turn owns two companies Hardolin SA and Hardolin Trading SA.

MARKET POTENTIAL

Medical Cannabis in Europe: The Markets and Opportunities (2nd Edition)
https://mjbizdaily.com/medical-cannabis-in-europe-the-markets-and-opportunities-2nd-edition/

Cannabis in Latin America: The Regulations and Opportunities (2ndEdition)
https://mjbizdaily.com/cannabis-in-latin-america-the-regulations-and-opportunities-2nd-edition/

THE EUROPEAN CANNABIS REPORT 5TH EDITION
https://prohibitionpartners.com/reports/