Cannim announces merger with leading Canadian cultivator Medisun

 

 

 

 

Australian-based cannabis company Cannim has reached an agreement for an all-script merger
with Medisun, one of Canada’s leading large-scale privately owned cultivators.
Once the merger is completed, Cannim will operate across four continents, including five of the
largest cannabis markets and the two key legal adult-use cannabis markets of Canada and the
USA.

The merged company will continue under the Cannim name and remain headquartered in Sydney.
Cannim Chair John Worton described the merger as a momentous step for the companies.
“Medisun’s quality, large scale cultivation expertise complements Cannim’s strengths in regulatory
compliance, operations and the establishment of channels to market. Uniting the two companies
greatly increases our ability to source and supply quality product to key international markets.
“Crucially, the merger will introduce Cannim to the burgeoning legal adult-use segment, making it
the leading Australian company in this space.”

The merged group is projecting pro-forma revenue of $12 million for Q4:2021, representing an
annualised run rate post-merger of around $48m, and positioning Cannim as one of the largest
cannabis companies by revenue in Australia.
Based in south-western Ontario, Medisun clones 1 million cannabis plants per year, and produces
up to 1000 kg of medicinal-quality cannabis each week from a five-hectare, climate-controlled
facility.

Medisun Chair Friedwart Barfod, based in the Netherlands, will join Cannim’s board alongside
another recent appointee, Dr Costa Boyages, who is on the board of the Australian Medical
Association (NSW) and the NSW Rural Doctors Network. Completing the board of the merged
entity is New York-based Steve Ezzes, who served as a Director of OzEmail and Nick
Selvaratnam, formerly the head of Credit Suisse equity capital markets in Australia.
Medisun’s Chief Operations Officer, Laust Dam, who has over 30 years’ experience in intensive
agriculture, will join Cannim’s C-suite as Chief Cultivation Officer and oversee the continued
development of Cannim’s two 500-acre farms in Australia and Jamaica.

Mr Barfod said that Cannim’s management and capital markets expertise, coupled with its
distribution capabilities provided a compelling alignment for Medisun’s board.
“Both companies prioritise consistent supply of premium quality products at cost-effective pricing,
and the potential scale of our combined operations was a key factor in our decision-making.”
Mr Worton said that the merger would also create a platform to achieve further growth through
partnership activity.

“Combined with other recent corporate transactions in the USA and Germany, Cannim’s market
penetration and new scale of operation will create an even more attractive option for organisations
seeking commercial partnerships in the global cannabis industry, health and clinic groups, as well
as corporates seeking to enter the market or expand their presence.”

Stuart Marsh, Cannim’s Chief Commercial Officer added, “The company has already started the
regulatory and compliance processes to bring Medisun’s output into Cannim’s international sales
channels, complementing Cannim’s premium Jamaican and Australian-sourced Terpene Rich
Buds.

“Significant orders for Medisun products have already been secured and we expect the first
shipments to be delivered in the first quarter of 2022.”

Media contact: Stuart Marsh (Cannim)
stuart@cannim.com
+61 410 308 841

Jeff Young (Medisun)
jeff.young@medisun.ca
+1 905 4641922

About Cannim
Established in 2017, Cannim was founded on the vision of bringing the benefits of medicinal
cannabis to the world, moving the trade from the darkness into the light©. This long-term
vision is integral to Cannim’s approach to improving its consumers’ health and wellness –
delivering ‘Better Balanced Bodies’ © – and establishing world-leading medicinal and
wellness cannabis brands.

Cannim has invested in farms, EU-GMP (Good Manufacturing Practice)-compliant
production facilities, and research programs in Jamaica and Australia, utilising expertise in
major global markets including Israel, Jamaica, the USA, the UK and Australia. It operates
alongside an international network of EU GMP manufacturers and channels to market.
Cannim’s circular integrated business is built on the three key pillars of Safety, Science and
Scale, and is focused on consistently and reliably delivering premium products to patients
around the world.

The worldwide cannabis market is still in its infancy, with total market value estimated at US$20bn
in 2020, and projected to grow to US$103.9bn by 2024. The Australian Government has estimated
that the local medicinal cannabis industry could grow into a sector worth more than $1 billion by
2029.

About Medisun
Located in Southwestern Ontario, an area known for its rich agricultural heritage, Medisun’s GACP
certified greenhouse facility boasts 13 acres of climate controlled grow area, allowing us to cultivate
consistently high quality, medical-grade cannabis year-round.
With 5-6 crop cycles per year and weekly large volume harvests, our customers can be certain that their
volume and quality demands will be met on time and in full. Through our dedication to sustainability,
innovation and quality, we’re elevating growing standards each and every day

 

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