Swiss-licensed medical cannabis targeting a €12 billion global market; EU distribution deal in place.
|Healthcare Digital B2B
|23 Aug 2017
- German & EU market distribution agreement in place
- Has a medical cannabis cultivation licence (THC)
- Anticipating EU GMP certification in Q4 2023
- €4M invested in swisscann by founders
Embracing the momentum of the thriving global medical cannabis industry and leveraging its THC-licensed medical cannabis production facility, swisscann aims to address the growing demand for safe and effective medical cannabis products.
With a medical cannabis cultivation (THC) licence in hand and a operational production facility, swisscann has established a partnership with a publicly listed European pharmaceutical company, a major distributor of medical cannabis.
Based in Zurich, Switzerland, swisscann enjoys ideal proximity to Germany, thereby enabling cost-effective logistics. Germany is Europe's largest market for medical cannabis and is projected to grow into a multi-billion-Euro market by 2027.
Swisscann products are expected to be available in pharmacies throughout Europe, with a strategic launch in the German market projected for Q1 2024, serving as the company's entry point into the European landscape.
Substantial accomplishments to date
Building on a series of significant milestones, swisscann aims to be a key player in the European medical cannabis industry. Here are some highlights of the company's accomplishments to date:
- swisscann's founders have invested €4m in establishing the business, including a state-of-the-art production facility engineered to create ideal growing environments for medical cannabis.
- Secured a medical cannabis cultivation licence (THC) from the Swiss government.
- Set to obtain EU GMP certifications in Q4 2023, following its September 2023 inspection.
- Established a distribution agreement with a publicly listed European pharmaceutical company that specialises in medical cannabis, to make their products available in pharmacies throughout Europe.
- Filed our first medical cannabis THC product with Germany's Federal Institute for Drugs and Medical Devices.
- Entry into the German market is expected in Q1 2024, setting the stage for substantial revenue growth in 2024.
The global medical cannabis market is poised for significant growth, expected to reach €20.5 billion by 2027 and estimated to grow at a CAGR of 19% between 2022 and 2027.
Within this expanding landscape, swisscann aims to target pharmacies and clinics as its primary customers. Revenue is projected to come from direct sales to these key groups, as well as through partnerships with leading medical cannabis distributors. This strategy will extend swisscann's reach to larger pharmacy chains.
Swisscann is focused on growing its distribution channels, achieving economies of scale, and aiming to boost its profit margins over the next three years.
Use of proceeds
The capital raised will be strategically allocated to accelerate swisscann's growth and achieve key milestones. Below is a breakdown of how the funds will be utilised:
- Production (60%): The majority of the funds will be invested in scaling up swisscann's production capabilities. The goal is to increase output while maintaining the highest quality standards.
- Operations (24%): A significant portion will be allocated to streamline swisscann's operations. The aim is to establish a more efficient and responsive operational framework.
- Business Development (16%): The remaining funds will be directed towards swisscann's business development activities. This encompasses market research, customer acquisition, and the establishment of strategic partnerships. The goal is to expand swisscann's market reach and diversify its client base.
The company has the following outstanding loans:
• €3,269,644.00 loan from a founder
• €1,059,497.00 loan from a founder
• €50,000 loan from an individual
The loans each mature in 2029 and carry an interest rate of 3% per annum. Since the company is still in the building process and has not made any profits yet, the founders have deferred interest from the advancement of the loans and have not received any interest payments. The funds raised from this investment round will not be used to repay these loans.
Direct investments in the round from investors outside of Seedrs have been paid in Swiss Francs (CHF). This is a total amount of CHF850,000, which has been reflected in the campaign at an agreed Exchange Rate of 1 CHF:0.926 GBP.
The share price paid by direct investors was CHF 5.00, which has been converted into GBP and rounded to 2d.p, at £4.63.
Investments on Seedrs are made in GBP.
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