Selling out of Italian subsidiaries seems to be the thing at the moment
MJ Biz Report
RAMM Pharma, a cannabis-based pharmaceutical company with products in several Latin American countries, has bought a 49% stake in the Sicilian CBD processing company Canapar.
Based in Toronto, RAMM purchased the shares from the cannabis venture-capital firm Canopy Rivers.
Under the agreement, RAMM paid $7 million cash to Canopy Rivers to buy a little more than 29.8 million common shares in Canapar, Canopy Rivers said in a statement at the end of last month.
An additional $2 million is due to be paid “upon achievement of certain operational milestones” either in cash or common shares in RAMM, Canopy Rivers said.
Canapar is a Sicily-based manufacturer and processor of CBD oil and isolates that sources its biomass from farmers and local companies under its subsidiary Canapar Farming in Southern Italy.
RAMM called the deal a “transformational acquisition to enter the European cannabis market.” It said in a statement last week that Canapar had “significant supply contracts in place,” including a 5-year agreement for 38.5 million euros ($46.8 million) with a leading ingredient company for full spectrum CBD oil.