DanCann Pharma A/S has secured 71 percent of the TO 2’s

COPENHAGEN, Denmark, 26 May 2023 - DanCann Pharma A/S (SS: DANCAN) (OTCQB: DCPXF) ("DanCann Pharma" or the "Company"), a Danish company powered by cannabinoids, hereby announces that they today received underwriting commitments of approximately DKK 5.6 million, regarding subscription options of series TO 2 ("TO 2"), meaning that approximately 71 percent of the issue volume in TO 2 is guaranteed.

The number of TO 2s amounts to 21,927,810, whereby each (1) TO 2 entitles the holder to subscribe for one (1) new share in the Company at a subscription price of DKK 0.36 during the period from 16 May 2023 to 31 may 2023. In the event that all warrants of series TO 2 are exercised for the subscription of shares, DanCann will receive approximately DKK 8 million before issue costs, which are estimated to amount to approximately DKK 1.2 million.

In order to ensure the use of TO 2, DanCann Pharma has obtained guarantee commitments of approximately DKK 5.6 million from a number of private investors. Through the guarantee undertaking, the guarantors agree that, in the event that all TO 2 are not used, they will subscribe for the number of shares that remain for full use.

In the event that the guarantee undertaking is activated, subscription of shares will in practice take place through a directed new share issue after the period of use for TO 2 has ended. Subscription in such a directed new issue must take place at the same fixed share price as for TO 2. For the guarantee commitments, a cash compensation is paid, corresponding to approximately DKK 0.84 million.   

Important dates

26 May 2023– Last day for trading in warrants

31 May 2023 – The exercise period ends

2 June 2023 – Planned communication of outcome of the warrant exercise

12 June – Planned conversion of interim shares to common shares

Information to warrant holders about subscription

In order for warrants not to expire and lose their value, an action from the warrant holder is required. The holder of warrants of series TO 2 must apply for subscription of new shares, by exercise of warrants, no later than 5 p.m. CEST 31 May 2023, alternatively sell the warrants no later than 26 May 2023.

Subscription and payment of new shares, by exercise of warrants, shall be made to the account-holding bank/nominee with which the warrants are registered. The subscription and payment shall be made in accordance with instructions from each such account holding bank/nominee. Usually, the account holding bank/nominee sends out a digital notice to the account holder, otherwise it is enough to log into the securities custody account from the first day in the exercise period in order to get instructions on how to exercise warrants for subscription of new shares. If you do not find these instructions, please contact your account holding bank/nominee. Please note that banks and other nominees may set different time limits for the last day for subscription, hence it is recommended to contact the account-holding bank/nominee early in the exercise period.

The account-holding bank/nominee with which the warrants are registered may request a submitted subscription form for the subscription to be accepted. Such a subscription form must be submitted to the account-holding bank/nominee in a complete and executed form in due time to allow the account-holding bank/nominee to process and forward the subscription form to ensure it is in the possession of Nordic issuing no later than 17.00 CEST on 31 May 2023. The subscription form can be found at DanCann Pharma’s website (www.dancann.com) and on Nordic Issuings website (www.nordic-issuing.se)

The number of warrants to be exercised will be transferred to Nordic issuing by your account-holding bank/nominee after the end of the subscription period. Payment for the exercised warrants will be made against delivery of temporary shares to your custody account, which afterwards will be replaced with the permanent shares. The new shares are expected to be listed for trading on Spotlight Stock Market on 12 June 2023.

Advisors

Corpura Fondkommission AB, www.corpura.se, acts as Financial Advisor. Nordic Issuing acts as settlement agent.

For additional information about the warrants, please contact:

Corpura Fondkommission AB

E-mail: [email protected]

www.corpura.se

About DanCann Pharma

DanCann Pharma A/S (SS: DANCAN) (OTCQB: DCPXF) was founded in 2018 and is a Danish biopharmaceutical Company powered by cannabinoids. DanCann Pharma is a licensed production and distribution Company.

The Company focuses on discovering, developing, manufacturing, and commercializing new therapeutic cannabinoids in a wide range of disease areas.

DanCann Pharma is EU-GMP-approved by the Danish Medicines Agency under the Danish Pilot Programme for medical cannabis, and have, among other things, license for manufacturing, export, import and distribution. The DanCann Pharma group also owns the subsidiary CannGros ApS, which is the market leader in Denmark with the import and distribution of the products Bedrocan®, Bedica® and Bediol® to all the Danish pharmacies.

DanCann Pharma A/S (SS: DANCAN) is listed on the Spotlight Stock Market in Copenhagen/Stockholm and side listed on OTCQB Venture Market in USA (OTCQB: DCPXF).

For more information, visit: www.dancann.com  

For further information, please contact:

Jeppe Krog Rasmussen, CEO

E-mail: [email protected]

Website: www.dancann.com

Forward-looking-statement:

Some statements in this release may contain forward-looking information. All statements, other than of historical fact, that address activities, events, or developments that the Company believes, expects, or anticipates will or may occur in the future (including, without limitation, statements regarding potential acquisitions and financings) are forward-looking statements. Forward-looking statements are generally identifiable by use of the words "may", "will", "should", "continue", "expect", "anticipate", "estimate", "believe", "intend", "plan" or "project" or the negative of these words or other variations on these words or comparable terminology.

Forward-looking statements are subject to several risks and uncertainties, many of which are beyond the Company's ability to control or predict, that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things, without limitation, the inability of the Company, to obtain sufficient financing to execute the Company’s business plan; competition; regulation and anticipated and unanticipated costs and delays, the success of the Company’s research strategies, the applicability of the discoveries made therein, the successful and timely completion and uncertainties related to the regulatory process, the timing and outcomes of regulatory or intellectual property decisions and other risks disclosed in the Company's public disclosure record on file with the relevant securities regulatory authorities.

Although the Company has attempted to identify important factors that could cause actual results or events to differ materially from those described in forward-looking statements, there may be other factors that cause results or events not to be as anticipated, estimated or intended. Readers should not place undue reliance on forward-looking statements. The forward-looking statements included in this presentation are made as of the date of this presentation and the Company does not undertake an obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise unless required by applicable securities legislation.

This disclosure contains information that DanCann Pharma A/S is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 26-05-2023.