DanCann Pharma receives approximately DKK 5.6 million from the exercise of series TO 2 together with a directed issue to the underwriters

COPENHAGEN, Denmark, 02 June 2023 - DanCann Pharma A/S (SS: DANCAN) ("DanCann Pharma" or the "Company"), a Danish company powered by cannabinoids, today announces the outcome of the exercise of warrants of series TO2 (the “Warrants”) and a directed issue of shares. A total of 5,854,594 TO 2 warrants were exercised, corresponding to an exercise rate of approximately 27 percent. Prior to the exercise period, the Company also agreed on underwriting from external investors regarding the warrants that are not exercised by the warrant holders up to 71 percent of TO 2 warrants. Therefore, the external investors will subscribe for a total of 9,700,961 shares in a directed issue, corresponding to the remaining approximately 44 percent of TO 2 warrants. DanCann Pharma will thus receive a total of approximately DKK 5.6 million before issuance costs, equivalent to 71 percent of TO 2.

A total of 21,927,810 TO 2 warrants were exercisable during the exercise period as from 16 May 2023 to 31 May 2023. A total of 5,854,594 TO 2 warrants have been exercised, corresponding to a subscription rate of approximately 27 percent. Within the framework of the previously communicated underwriting commitment, the Board of Directors, with the authorization from the General Meeting held on 20 September 2022 as set out in clause 5.4 of the articles of association, has decided to carry out a directed share issue of 9,700,961 shares to the parties that have entered into underwriting agreements. The subscription price in the directed share issue will be at the predetermined TO 2 price of DKK 0.36 per share. Through TO 2 and the directed share issue, DanCann Pharma will receive approximately DKK 5.6 million in proceeds before issuance costs, equivalent to 71 percent of TO 2. The issuance costs are estimated to be approximately DKK 1.1 million, of which approximately DKK 0.84 million is the underwriting fee. A total of 5,854,594 shares are issued upon exercise of the TO 2 warrants. A total of 9,700,961 shares are issued to external investors in the directed issue, provided that the external investors pay the subscription amount within the payment deadline as stipulated below. The shares from TO 2 are expected to be registered with the Danish Business Authority on Monday 5 June 2023, after which the total number of shares of the Company will amount to 72,999,839, and the share capital will amount to DKK 2,737,493.9625.

The payment deadline for the external investors in the rights issue is 19 June 2023. Provided that the full subscription amount is paid within this deadline, these shares are expected to be registered with the Danish Business Authority on Tuesday 20 June 2023, after which the total number of shares of the Company will amount to 82,700,800, and the share capital will amount to DKK 3,101,280.

The reason for deviating from the shareholders' preferential right in the directed issue of shares is to fulfill the Company's obligations towards the underwriters as a result of entered underwriting agreements. The Board also believes that it is advantageous for the Company's financial position and in the shareholders' interest to secure the funds from the TO 2 warrants to strengthen the Company's working capital and allows the Company to use the proceeds from the directed share issue of shares as described in the prospectus.

Advisors

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

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.