DanCann Pharma A/S to refocus its strategy - will reinvigorate its pipeline and product portfolio, and start looking for future owner or partnership for BP1
COPENHAGEN, Denmark, 31 August 2023 – DanCann Pharma A/S (SS: DANCAN) (OTCQB: DCPXF) ("DanCann Pharma" or the "Company"), a Danish company powered by cannabinoids, hereby inform the market of a significant change in its strategic business focus, effective immediately. This shift reflects the commitment to adapt to evolving market dynamics and position DanCann Pharma for sustainable growth.
The new strategic direction will build upon the existing strengths, notably CannGros. Going forward, the Company will significantly increase its emphasis on sourcing, distribution, and sales within the Danish market.
The Company will maintain its commitment to supplying current products to the Danish market, including those from Bedrocan. Simultaneously, the Company will actively strengthing its future pipeline, significantly driven by the recent partnership agreement with MYCB1 GmbH. Moreover, the Company aspire to explore broader horizons within the industry, outside the limits of the Pilot Programme for medicinal cannabis.
The deliberate shift will result in a stop of further investments in the production facility, Biotech Pharm 1 (“BP1”), with a concurrent reduction in production activities to the bare minimum. The ultimate aim is to restrict the cash burn rate and attain self-sufficiency independent of external capital markets across short, medium, and long-term horizons.
The Company has observed that the timeline for bringing its tetrahydrocannabinol candidate for its biomaterial product to market from the production facilities appears to be longer than initially anticipated. This extended runway, combined with shifting market dynamics and a lower market capitalization, has necessitated a recalibration of the strategic focus.
The Company is committed to proactively exploring alternative solutions, including potential joint ventures or sale of BP1 assests. The recognition of the substantial value inherent in the state-of-the-art facility, particularly its EU-GMP certification, fuels the optimism in finding mutually beneficial arrangements with new stakeholders, paving the way for a future owner or partnership. Consequently, the Company’s past guidance will no longer be quantifiable.
The Company is conducting an organizational review to enhance its ability to strenghting its pipeline and expanding its operating space.
In the forthcoming months, DanCann Pharma will unveil future elaboration in line with the new strategic focus, with a paramount emphasis on sourcing, distribution, and sales within the Danish market, encompassing new products within the pipeline – and simultaneously exploring opportunities for a new future owner or partnership for BP1.
About DanCann Pharma A/S
DanCann Pharma A/S (SS: DANCAN) (OTCQB: DCPXF) 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 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
Phone: +45 2963 6920
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 30-08-2023.
