AusCann (ASX:AC8) to expand into European cannabis market with Eurocann deal – The Market Herald

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  • AusCann (AC8) Enters into Binding Terms Sheet with European Cannabis Corporation (Eurocann) to Expand into the European Cannabis Market
  • As part of the term sheet, the companies will work together to establish a joint steering committee to focus on SEDDS, AusCann’s drug delivery technology.
  • AusCann has also entered into a secured commercial loan facility with Eurocann to expand its cannabis cultivation and extraction capabilities.
  • The loan has a limit of $5 million, an interest rate on funds drawn of 7.5% per annum and a default rate of 9.5% per annum.
  • AusCann shares ended the day up 7.81% and are trading at 6.9 cents

AusCann (AC8) has entered into a binding term sheet with European Cannabis Corporation (Eurocann) to expand into the European cannabis market.

Eurocann is an unlisted Australian public company which owns 100% of HAPA Pharma GmbH in Germany.

As part of the term sheet, the companies will work together to establish a joint steering committee to focus on the SEDDS, AusCann’s drug delivery technology.

This will see the development of cannabis products in standardized dosage form for marketing in Germany.

The companies will also work together on importing EU-GMP cannabis products into Australia with HAPA to exclusively manufacture and supply certain EU-GMP medical cannabis products to AusCann.

Loan facility

AusCann has also entered into a secured commercial loan facility with Eurocann to expand its cannabis cultivation and extraction capabilities.

The loan has a limit of $5 million, an interest rate on funds drawn of 7.5% per annum and a default rate of 9.5% per annum.

A refund of $1 million will occur on the first and second anniversaries of the drawdown date, with the remaining funds to be paid on the third anniversary.

The draw is subject to the signature and delivery of the originals of the loan contract, an original of the term sheet and AusCann completes due diligence.

MMIC research agreement

Further away, AusCann has entered into a research agreement with Monash University’s Medicines Manufacturing Innovation Center to enhance SEDDS production capabilities for the European market.

The research agreement aims to optimize SEDDS technology to be able to supply bulk THC and CBD powders as single active ingredients.

AusCann shares rose 7.81% and were trading at 6.9 cents at market close.

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