StillCanna acquires Olimax, a leading producer of cannabis seeds, in a cash and stock transaction. It is another Canadian company interested in the Polish cannabis market. The company purchased the Polish cannabis producer for $18.6 million. This deal will complete within three years. The plans assume an increase in the area of cultivated fields and the ability to produce extracts.
StillCanna is trading on the Canadian Stock Exchange with its registered office in Vancouver, British Columbia. The company purchased 100% of Poland’s leading cannabis producer Olimax for $18.6 million in cash. This deal will complete within three years.
In total, this amounts to about $22 million. “This acquisition particularly positions StillCanna in the wholesale supply chain of CBD in Europe. Yet, there is a global interest in the wholesale flow of CBD on this continent,” said Jason Dussault, CEO for StillCanna.
The founders of Olimax, Zofia Valber, and Krystyna Bojeck, have 40 years of experience in cannabis production. Furthermore, the company from Bilcza, near Kielce, has been operating on the market since the 1990s, based on Swedish experience in this field.
Furthermore, Olimax is the only grower in the country, and the third on the continent, with its own variety of cannabis called Glyana. The THC content should not exceed 0.2%, which would make it illegal in the EU. The company uses its own variety of cannabis for medicine which has a lower psychoactive substance content than that of other kinds of cannabis.
Since the 1990s, Olimax is active in promoting the cultivation of fibrous hemp in Poland. Furthermore, the company has all the necessary permits allowing them to collect and process cannabis. In addition, the company offers advisory services related to cultivation and assistance in obtaining seeds.
Also, Olimax NT acts as an intermediary in the trading of hemp straw with entities using fiber and inflorescence. Hemp has a very low demand for fertilizers, herbicides, and pesticides. Due to the reduction of CO2 emissions, the cultivation of hemp is also extremely environmentally friendly.
During this time, the company succeeded in..
- developing its own high CBD cannabis strain
- patenting a fertilizer with micro-nutrients
- building cannabis harvesting machines
Advantages of the transaction
The acquisition of Olimax provides StillCanna with access to:
- 1500 hectares of hemp crops
- own proprietary breed
- CBD extractors
The plans assume an increase in the area of cultivated fields and the ability to produce extracts. Zofia and Krystyna have taken up the position of Vice-President for Operations in Poland and will supervise the management of Polish companies. Olimax cultivated cannabis produces oils and dehydrates.
Canadians in Poland
Negotiations with StillCanna lasted several weeks. As a result, Canadians took over 100% of the Polish company. Accordingly, the founders, Krystyna Bojek and Zofia Vahlberg, will receive $4 million and stock options for StillCanna. Within three years, they will receive 24 million shares of the Toronto listed company – a package currently valued at nearly $21 million.
This is the second transaction in the last 12 months in which a large Canadian cannabis company invests in Poland. In August last year, The Green Organic Dutchman bought HemPoland.
(Featured Image by marselelia)
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