Medical cannabis company on £ 3m takeover

A SCOTTISH medical cannabis entrepreneur has completed the £ 3 million acquisition of a major Belgian company.

Financed by existing capital, Always Pure Organics, headquartered in Manchester, is taking over 100 percent of the shares in Distribution Legal Hemp and NexGen without “staff drain”.

Gavin Ogilvie, Founder and CEO of APO, will lead the enlarged company and Joeri Perneel, CEO of DLH / NexGen, will take on a new role as Chief Commercial Officer of APO, continuing to focus on the company’s operations in the Benelux and French markets.

The purchase gives APO, one of the top three wholesale and white label market leaders in the UK, Japan and Europe, access to a key distribution center.

With 80 percent of the customer base in Europe, “the post-Brexit takeover enables APO to continue to offer its EU customers a fast and efficient delivery service”.

APO increased its workforce from six to 62 and last year increased its revenue by 215% to a forecast of £ 12.6 million for 2021, while DLH grew 170%.

READ MORE: Cannabis extracts go mainstream as Scottish companies ride the wave

Mr Ogilvie said, “Belgium is the first nation in Europe to legalize the use of CBD flowers through their existing tobacco substitute laws.

“It is likely that France will soon attempt to regulate CBD bloom through the same legal mechanism and APO will therefore be in a strong strategic position to take full advantage of this new market when it opens.”

Mr. Perneel said: “Both companies know each other and have been working together for more than two years.

“The deal is complementary at all levels. DLH / NexGen is the market leader in tobacco substitutes in Belgium and a pioneer in the wellness sector.

“We’re just beginning the journey and I’m excited to be working with APO to make this new group a world-class player.”

Source link

You May Also Like