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Friday 12 July, 2019

Freyherr Intnl Group

Forthcoming IPO

RNS Number : 3102F
Freyherr International Group PLC
12 July 2019









Anticipated IPO on NEX Exchange





London, 12th July 2019




Freyherr International Group plc - a profitable, vertically integrated Medicinal Cannabis Company - has prepared a pathfinder Admission Document and has commenced a book building exercise with a view to raising new money to invest in, and enhance, the company's current activities.

The Company is about to apply for admission to trading on the NEX Growth Market and the first day of trading is expected to be 30th July 2019.


Freyherr International Group plc is the UK parent company of a group engaged in the production of medicinal cannabis, cannabis cultivation and the production of cannabis dosing and dispensing packaging. Operations are centred in Slovenia and the Group principally operates within the EU.




The Group currently consists of 3 Slovenian operating companies with a UK parent:


Freyherr d.o.o. has expertise in the cultivation and harvesting of cannabis as well as the formulation, marketing and distribution of cannabis and cannabis derived concentrates and extracts. It is currently growing cannabis in Slovenia and has invested in various cannabis production facilities.


Freyherr Pharma d.o.o. is the analytics and pharmaceutical arm of the Group and holds an EU GMP certificate. It operates from its own certified building in Slovenia and manufactures CBD products for the Group and produces white label CBD products supplying them to various EU countries.


Patron d.o.o. is the dosing and dispensing arm which has been trading since 2015 it markets products suitable for dispensing concentrates and extracts of all sorts of nutritional and pharmaceutical products. The company also offers Cannabinoid analysis to identify the THC, CBD, or CBN levels in a given extract, concentrate or plant.


Key Competitive Advantages



Pharmaceutical knowledge - key people are experienced pharma experts.


Experience and Market Knowledge - Freyherr has been active in the cannabis business  for the last 5 years and is focused on medicinal cannabis.



Located in the heart of Europe - potentially the largest market for medicinal cannabis.



Experience in creating premium production facilities.



Already obtained certificates and permissions. Familiar with cannabis regulation and certification requirements throughout the EU.



Deep co-operation with all key institutions (university faculties, governments, farmers, etc.).


Financial Proposal


The Company is making an offer for subscription equal to c 10% of the enlarged share capital and is applying for admission to the NEX Growth Market in London. The proceeds of the subscription are specifically targeted at three main areas of development, all of which are forecast to generate high returns within relatively short periods of time. Freyherr is looking to invest up to Euro 5.5 million into:

      Freyherr Pharma facility upgrade; expected spend Euro 1.5 million. This is to include new stability chambers, ventilation and further drying units. Once the upgrade has been completed it is anticipated that full GMP pharmaceutical certification could be obtained after approximately 12 months.

      Existing laboratory upgrades, expected to cost approximately Euro 1.0 million. This is primarily for equipment for the analysis of cannabinoid material.

        Purchase of new equipment for improved extraction and distillation, anticipated cost Euro 1.55 million. This will enable de-waxing and crystalisation, giving 99%+ purity.

The balance of any surplus will be used for helping establish standalone medicinal cannabis facilities in southern Europe, from where a number of favourable commercial approaches have been made to the Company.

Together these initiatives will help the Company take advantage of the current demand for medicinal cannabis products and implement a model for pan-European expansion.


The offering comprises 2,525,252 Ordinary Shares available for subscription.


The Market


Management believes that Europe's early-stage medicinal cannabis market represents a significant opportunity for Freyherr. Europe is home to more than 740 million people, twice the population of Canada and the US combined.

Market research companies BDS Analytics and Archview recently both forecast that healthcare spending will make Europe one of the world's largest medical cannabis markets. Many governments in Europe appear to be open to taking a more progressive approach.

Today, medical cannabis is legal in 22 countries in Europe, with six EU member states expected to be announcing legislation in the second half of 2019, the latest being France. By 2028, the European cannabis market could be worth up to 123 billion, according to the market intelligence firm, Prohibition Partners.


There is more acceptance of potential benefits from medicinal cannabis, whether through direct ingestion (in the case of droplets) or through creams, suppositories, patches and inhalers. The list of ailments or existing conditions, such as epilepsy, that could be helped by medicinal cannabis is increasing all the time. Cannabis as medicine may help many conditions including epilepsy, glaucoma, Alzheimer's, symptoms of multiple sclerosis, inflammatory bowel conditions such as Crohn's disease, chronic pain, Parkinson's disease and assist cancer patients undergoing chemotherapy.


With so many densely concentrated economies and with favourable cannabis legislative momentum, the European markets are set to become one of the top areas for investment.

For international cannabis companies, Europe will also be one of the most difficult markets to enter due to the strict regulatory framework, complex licensing and trading requirements and cultural and societal nuances around cannabis consumption. Experience of such markets will be key to success. Currently EU medicinal cannabis production is highly fragmented and each EU country has vastly different regulations on growing, producing, distributing and allowing consumer usage.

Freyherr will use their vertically integrated model and industry experience to adopt a country-by- country approach to expansion.




For more Information, please contact:


Investor Relations

Corporate Advisor

Helford Capital Partners


City & Merchant

97 Jermyn Street





+44 20 7839 5081

Level 17 Dashwood House

69 Old Broad Street




+44 20 7101 7676

Tony Burke

[email protected]

Tim Cartmell

[email protected]     

Christophe Sailland

chri[email protected]

David Papworth

[email protected]



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