Company” or
RAMM ) (CSE: RAMM), a leader in plant-derived cannabinoid pharmaceutical and other cannabis-based products, is pleased to announce that the Company has entered into a definitive acquisition agreement with Canapar Corp. (“
Canapar”) and a wholly-owned subsidiary of the Company on May 11, 2021, that provides for the acquisition of all the common shares of Canapar (“
Canapar Shares”) that the Company does not currently own in exchange for an aggregate of approximately 21,904,095 common shares RAMM at a deemed value of $1.20 per Ramm Share (“
RAMM Shares”) for a total purchase price of approximately $26.2 million (the “
Transaction”).
Based in Italy, Canapar is positioned to become one of Europe s largest vertically integrated cannabis companies. Canapar s state-of-the-art extraction facility is the largest in Europe and has been custom designed to produce active compounds to be used in high-quality pharmaceutical, wellness and cosmetic products from
About the European Cannabis Market
Europe represents one of the largest potential cannabis markets globally. The Europe cannabis market is currently valued at US$3.5 billion and expected to reach US$37 billion by 2027 with an anticipated CAGR of 29.6% from 2020 to 2027 (ResearchAndMarkets.com, 2020). European countries are experiencing a transformation in the regulations for marketing cannabis and related products, facilitating easier cultivation, processing, and trade of the cannabis-derived products across this region.
Terms of the Transaction
The Canapar Shares were acquired for C$7,000,000 pursuant to the terms of a share purchase agreement (the Agreement ) and represent approximately 49% of the issued and outstanding shares of Canapar on a non-diluted basis. Canopy Rivers is also entitled to additional contingent consideration of C$2,000,000 payable in cash or issuable in common shares of RAMM, at the sole discretion of RAMM, on the achievement of certain production mileston