Akanda has closed its USD$3m (~£2.40m) acquisition of Holigen in a move it says will help the company meet the growing demand as adult-use markets develop.
The acquisition will add prized cultivation, manufacturing and distribution assets to Akanda. Additionally, Akanda will have access to an award-winning genetics library, accelerating its seed-to-patient model. As well as Europe, it will also advance Akanda’s position in the Middle East and Africa (EMEA).
Akanda CEO, Tej Virk, commented: “Holigen provides the added superior genetics, capacity, and route-to-market Akanda needs to ensure that we capture more than our share of the rapidly emerging cannabis market across the EMEA region.
“Together with Holigen, we are positioned to be a leader in today’s medical cannabis environment and to have the ability to scale to the recreational opportunity as it unfolds.
Read more: Akanda CEO discusses ESG and disruption in European cannabis market
“Now that the acquisition has closed, I look forward with to working with Tom Flow and his team to leverage the platforms of both companies.”
Akanda has also purchased Flowr common shares and has provided interim funding to Holigen to support its working capital needs prior to closing.
Holigen’s subsidiary, RPK Biopharma Unipessoal, has a 20,000 square foot indoor EU GMP certified grow facility located near Lisbon and an outdoor facility located two hours south in Aljustrel. Akanda has previously stated that the facilities will enable the opportunity to produce two tonnes of indoor cannabis, over 100 tonnes of outdoor cannabis, and over eight tonnes of third-party manufacturing capacity each year.
This will well position Akanda to serve growing demand in the European region as legislation around adult-use evolves.
In a previous statement, Virk commented: “Together with Holigen, we will become the clear leader in current and emerging markets in Europe for both medical and eventually adult-use customers. Portugal is one of the EU’s leading jurisdictions to conduct cannabis business with a forward-looking government, in addition to a responsive regulator.”
[activecampaign form=31]
