Stillcanna acquires the Polish hemp producer – Olimax – and receives the proceeds of its $24,365,000 financing. GKR Legal M&A team (Rafał Roszkowski, Tomasz Małecki, Justyna Burska, Piotr Dobrowolski) advised the company on this transaction.
StillCanna Inc. (www.stillcanna.com) is a Canadian early-stage life sciences company focused on large-scale CBD extraction in Europe. Based on a proprietary process and intellectual property, the Company is forecasted to be one of the lowest-cost CBD extractors operating in Europe. The Company has signed an extraction contract to be the exclusive extractor for Dragonfly BioSciences LLC, a United Kingdom-based supplier of CBD. With the completion of the Olimax Transaction, StillCanna is one of the leading processors and providers of market-ready CBD in Europe.
The founders of Olimax Zofia Valber and Krystyna Bojeck have taken on the roles of VP Operations Poland and will oversee the day-to-day management of the Company’s Polish operations. With over 40 years combined experience in hemp products, their accomplishments include a patented microelement fertilizer and the germination and registration of an EU certified propriety varietal of high CBD content hemp. Zofia and Krystyna have decades of hemp production and product formulations along with degrees in agriculture and chemistry.
The Company is seeding its 1500 hectares of land in Poland with the Company’s proprietary hemp varietal and expects its harvest to be in early August.
“This acquisition uniquely positions Stillcanna in the supply chain of wholesale CBD in Europe,” pointed out Jason Dussault Chief Executive Officer of StillCanna, “there is global interest in sourcing a reliable flow of wholesale CBD in Europe and StillCanna is now in a position to address that global interest.”
The purchase price of Olimax consists of 24,000,000 common shares and $2,000,000 in cash. 20,064,000 of the 24,000,000 shares are subject to a contractual restriction on trading whereby 1/12 of the shares will be released from such contractual restriction every three months from the date of issuance and all of the shares are subject to a four-month and a day hold period from the date of issuance, in accordance with applicable Canadian securities laws.