DanCann Pharma A/S Publishes Its Annual Report for 2023: A Year of Strategic Review and Future Focus on Capital Efficiency and Profitability

COPENHAGEN, Denmark, 15 May 2024 - DanCann Pharma A/S (SS: DANCAN) ("DanCann Pharma" or the "Company"), a Danish company powered by cannabinoids, hereby announce that The Board of Directors and the Chief Executive Officer of DanCann Pharma publishes the annual report of the year 2023. The annual report is available in this press release and on the website of DanCann Pharma.

Financial highlights for 2023: 

• Revenue for 2023 amounted to DKK 6.07 million (2022: DKK 5.71 million).  
• Net loss in 2023 amounted to DKK -62.26 million (2022: DKK -16.06 million).*
• As of December 31, 2023, the Company's cash and cash equivalents amounted to DKK 2.01 million. 

Selected business milestones achieved in 2023:

• More than 14,000 packages of medicines (medicinal cannabis) sold in Denmark in 2023.

 
Financial outlook for 2024:

• In 2024, DanCann Pharma A/S forecast revenue of DKK 13.30 million with a net result of approx. DKK -4.00 million.

 

* The Company has made a strategic decision to write down its asset called BP1 by DKK 43.84 million. This impairment reflects a necessary adjustment aligned with the revised strategic direction and an updated assessment of the asset’s future economic benefits. This significant financial adjustment has been recorded to accurately represent the asset’s reduced valuation on the balance sheet. 

For investors, both current and prospective investors, this write-down is a critical factor to consider. It impacts the reported equity and results in a temporary decrease in earnings. However, it is important to emphasize that this decision was taken to align the asset base with the long-term strategic goals of the Company, focusing on optimizing future profitability and efficiency. This adjustment is expected to stabilize the financial statements and support sustainable growth. The decision is aimed at repositioning the Company more favorably in its market segment, thereby enhancing and improving shareholder value in the long term.

The management team is committed to transparency in these adjustments and to providing stakeholders with a clear understanding of the reasons behind these decisions and their expected impact on the Company’s financial health and strategic positioning.

Carsten Trads, Chairman of DanCann Pharma, comments:

2023 has marked a significant year in DanCann Pharma.

We embarked on a bold journey of strategic redirection, decisively transitioning from in-house production to a focused strategy on sourcing, importing, and distributing high-quality medicines in the Danish market. This shift underlines our unwavering commitment to the needs of patients and their families, ensuring access to essential treatments while enhancing our financial resilience.

This transition capitalizes on our strengths in this area. It also reflects our proactive approach to navigating market shifts, optimizing asset utilization, and reinforcing our market position. As part of our ongoing strategic assessment, the financial result for 2023 has been significantly affected by the write-down of the asset associated with historical investments in our BP1 production facilities. After a thorough review and in consultation with our financial advisors, the decision was made to write down the asset.

This substantial write-down, though impactful on the financial results for the year, is deemed prudent and necessary within the context of our revised strategic direction. It is important for investors to recognize that this write-down is a non-recurring event that aligns the book value of the asset with its current economic value and does not indicate underlying issues with our operational viability or future performance potential.

We believe this adjustment will enable clearer financial projections, and hereby, enhance investor confidence by providing a more accurate representation of our asset values and future profitability, all in alignment with our long-term strategic goals.

As we reflect on the year, I extend my profound gratitude to our employees, whose passion and commitment have been instrumental in making it a smooth transition. I also want to thank our investors and board members, whose trust and support have been vital in steering DanCann Pharma toward this exciting new chapter.

With a more streamlined and efficient business model, we are enthusiastic about our strategic pivot, leaving DanCann Pharma poised for sustained growth in 2024.

About DanCann Pharma A/S

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

DanCann Pharma A/S (SS: DANCAN) is listed on the Spotlight Stock Market in Copenhagen/Stockholm.

For more information, visit: www.dancann.com

For further information, please contact:

Jeppe Krog Rasmussen, CEO

E-mail: [email protected]

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 15-05-2024.