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Swisscann

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Swiss-licensed medical cannabis targeting a €12 billion global market; EU distribution deal in place.

124%
 - 
Funded 7 Dec 2023
£850,003 target
£1,067,229 from 583 investors
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Business overview

Location Zürich, Switzerland
Social media
Website swisscanntec.ch/en/
Sectors Healthcare Digital B2B
Company number CHE-152.681.235
Incorporation date 23 Aug 2017
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Investment summary

Type Equity
Valuation (pre-money) £9.3M
Equity offered 10.22%
Tax relief N/A
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Business highlights

  • German & EU market distribution agreement in place
  • Has a medical cannabis cultivation licence (THC)
  • Anticipating EU GMP certification in Q4 2023
  • €4M invested in swisscann by founders
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Key features

  • Secondary Market
  • Nominee investment min. £13.89 +
  • Direct investment min. £25,000.00 +

Idea

Introduction

Embracing the momentum of the thriving global medical cannabis industry and leveraging its THC-licensed medical cannabis production facility, swisscann aims to address the growing demand for safe and effective medical cannabis products.

With a medical cannabis cultivation (THC) licence in hand and a operational production facility, swisscann has established a partnership with a publicly listed European pharmaceutical company, a major distributor of medical cannabis.

Based in Zurich, Switzerland, swisscann enjoys ideal proximity to Germany, thereby enabling cost-effective logistics. Germany is Europe's largest market for medical cannabis and is projected to grow into a multi-billion-Euro market by 2027.

Swisscann products are expected to be available in pharmacies throughout Europe, with a strategic launch in the German market projected for Q1 2024, serving as the company's entry point into the European landscape.

Substantial accomplishments to date

Building on a series of significant milestones, swisscann aims to be a key player in the European medical cannabis industry. Here are some highlights of the company's accomplishments to date:

- swisscann's founders have invested €4m in establishing the business, including a state-of-the-art production facility engineered to create ideal growing environments for medical cannabis.

- Secured a medical cannabis cultivation licence (THC) from the Swiss government.

- Set to obtain EU GMP certifications in Q4 2023, following its September 2023 inspection.

- Established a distribution agreement with a publicly listed European pharmaceutical company that specialises in medical cannabis, to make their products available in pharmacies throughout Europe.

- Filed our first medical cannabis THC product with Germany's Federal Institute for Drugs and Medical Devices.

- Entry into the German market is expected in Q1 2024, setting the stage for substantial revenue growth in 2024.

Monetisation strategy

The global medical cannabis market is poised for significant growth, expected to reach €20.5 billion by 2027 and estimated to grow at a CAGR of 19% between 2022 and 2027.

Within this expanding landscape, swisscann aims to target pharmacies and clinics as its primary customers. Revenue is projected to come from direct sales to these key groups, as well as through partnerships with leading medical cannabis distributors. This strategy will extend swisscann's reach to larger pharmacy chains.

Swisscann is focused on growing its distribution channels, achieving economies of scale, and aiming to boost its profit margins over the next three years.

Use of proceeds

The capital raised will be strategically allocated to accelerate swisscann's growth and achieve key milestones. Below is a breakdown of how the funds will be utilised:

- Production (60%): The majority of the funds will be invested in scaling up swisscann's production capabilities. The goal is to increase output while maintaining the highest quality standards.

- Operations (24%): A significant portion will be allocated to streamline swisscann's operations. The aim is to establish a more efficient and responsive operational framework.

- Business Development (16%): The remaining funds will be directed towards swisscann's business development activities. This encompasses market research, customer acquisition, and the establishment of strategic partnerships. The goal is to expand swisscann's market reach and diversify its client base.

Key Information

Outstanding debt

The company has the following outstanding loans:

• €3,269,644.00 loan from a founder
• €1,059,497.00 loan from a founder
• €50,000 loan from an individual

The loans each mature in 2029 and carry an interest rate of 3% per annum. Since the company is still in the building process and has not made any profits yet, the founders have deferred interest from the advancement of the loans and have not received any interest payments. The funds raised from this investment round will not be used to repay these loans.

Exchange rate

Direct investments in the round from investors outside of Seedrs have been paid in Swiss Francs (CHF). This is a total amount of CHF850,000, which has been reflected in the campaign at an agreed Exchange Rate of 1 CHF:0.926 GBP.

The share price paid by direct investors was CHF 5.00, which has been converted into GBP and rounded to 2d.p, at £4.63.

Investments on Seedrs are made in GBP.

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Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Only shareholders can access this page

If you successfully purchase a share lot of this business, you will be granted access.

Buy shares

Investing involves risks, including loss of capital, illiquidity, lack of dividends and dilution, and should be done only as part of a diversified portfolio. Please read the Risk Warnings before investing. Investments should only be made by investors who understand these risks. Tax treatment depends on individual circumstances and is subject to change in future.

This campaign for Swisscann has been approved by Seedrs Limited (trading as Republic Europe) ("Republic Europe", "us" or "we"), as of 20 October 2023 as a financial promotion. Republic Europe is authorised and regulated by the Financial Conduct Authority with firm reference number 550317. In approving this campaign, Republic Europe has concluded that the information, taken as a whole, is "fair, clear and not misleading." This means that for factual statements we have reviewed evidence of their accuracy, and that for aspirational statements we believe they are phrased appropriately in light of their speculative nature. You should note that in the case of factual statements, the evidence we review is provided by the business, and we do not audit it, which means that we may not be able to identify forged or altered evidence. You should further note that in the case of aspirational statements, the nature of the type of businesses presented on the Republic Europe platform is such that they are likely to have high ambitions, and we may approve statements that convey those ambitions even where we do not believe, or we do not have a view on whether it is likely, that they will be fully realised. The pre-money valuation and investment sought in the campaign are those set by the business: they are not reviewed or established by us, and the valuation is not an independent view of what the business is worth. Given the nature and type of businesses presented on the Republic Europe platform, it is possible that the business has very little cash remaining prior to receiving this investment, and the investment sought may be necessary for the business's on-going existence.

Republic Europe does not make investment recommendations to you. No communications from Republic Europe, through this website or any other medium, should be construed as an investment recommendation. Further, nothing on this website shall be considered an offer to sell, or a solicitation of an offer to buy, any security to any person in any jurisdiction to whom or in which such offer, solicitation or sale is unlawful. Republic Europe does not provide legal, financial or tax advice of any kind. If you have any questions with respect to legal, financial or tax matters relevant to your interactions with Republic Europe, you should consult a professional adviser.

Tax Relief (SEIS)

This business is eligible for SEIS relief - providing qualifying investors with income tax relief of 50% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Tax Relief (EIS)

This business is eligible for EIS relief - providing qualifying investors with income tax relief of 30% of their investment and certain other tax reliefs. Tax treatment depends on individual circumstances and is subject to change in future. Click to learn more.

Valuation (pre-money)

Valuation rounded from £9,260,000

This is the fully-diluted pre-money valuation of the business (i.e. before the new investment comes in and including issued options and other equity interests). In contrast, the post-money valuation is based on inclusion of the new investment in the value.

It is calculated as the pre-money valuation plus the amount of new investment. e.g. If Company A is ascribed a pre-money valuation of £1,200,000 by prospective investors investing £300,000, its post-money valuation is £1,500,000.

The investee business is responsible for setting its own valuation, it has not been prescribed by Seedrs.

Pitch type

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Equity Offered

The equity offered is the percentage of the company’s shares being issued in return for the amount of investment raised.

When the amount raised is less than 100%, the equity offered is based on the target raise. Once the company has raised over 100% it is based on the total raised.

In some scenarios, entrepreneurs may accept additional direct investment after closing their Seedrs campaign. Provided this is within 6 months of the closing and on the same terms, we do not typically offer pre-emption rights on that extra investment (where you have the opportunity to invest again to maintain your percentage shareholding).

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Nominee investment

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Custodian

If you invest in this Campaign, Seedrs will act as Custodian rather than provide our standard nominee service. This is due to the fact that the business is not directly involved in the share sale and Seedrs will not benefit from any rights under a shareholder agreement. As a result, Seedrs will handle administrative tasks as we do normally, but you will not have information or voting rights, updates from the business, preemption on future fundraising, or ongoing support about business trading activity.

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Secondary market

This shows if the business has opted-in or opted-out of allowing its shares to be bought and sold on the secondary market.

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Direct investment

This is an option to invest and hold shares 'directly' in the company (rather than via the Nominee investment). This option is only available to those investing over the threshold amount, which is determined by the fundraising company.

If you choose to hold your shares directly, you will be responsible for any contractual or administrative arrangements with the company you are investing in.

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Payment options

We are not able to accept card payments for investments into this sector. You can pay for your investment by creating a bank transfer, using funds in your investment account or create a Pay by Bank payment. Your investment will only be completed once the funds have reached our account.

Business Involvement

This Campaign offers shares for sale in business that is not directly involved in this Campaign or the sale. As a result, the Campaign and post-investment experience, including investor rights, will differ from a business-led campaign on Seedrs. Most notably, the business will not engage with investors in the discussion forums both during and after the sale or provide any updates to investors.

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Payment options

We are not able to accept Pay by Bank payments for investments into this sector. You can pay for your investment with a card payment, by creating a bank transfer or by using funds in your investment account. Your investment will only be completed once the funds have reached our account.

Drawdowns

This campaign offers the ability to pay for an investment by drawdowns.

Security Token

A security token is a digital asset that represents ownership or other rights. It is a digital form of traditional investments. In the future, you may be able to trade your investment through compatible exchanges.

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