Osborne Clarke has advised Demecan, a producer of medicinal cannabis, on their recently completed funding round.
The Saxon company Demecan, founded in 2017, covers the entire value chain of medicinal cannabis – from cultivation through pharmaceutical production to delivery to pharmacies. In 2019, Demecan received the contract to grow medical cannabis in Germany from the Federal Institute for Drugs and Medical Devices (BfArM). Since the (partial) legalisation of cannabis in July this year, the company is now allowed to cultivate medicinal cannabis without limits; according to their own statements, Demecan is the first German company to receive this cultivation permit under the new cannabis law.
Additionally, the company announced that it has seen strong revenue growth since April 2024. The recently successfully completed funding round is now the logical next step in the company's growth trajectory. The funding round was led by Florida-based Trog Hawley Capital, with additional participation from new and existing investors. It is the first involvement of an institutional US investor in Demecan.
“This financing round is a significant milestone for Demecan. It gives us the necessary resources to accelerate our growth trajectory and capitalize on the burgeoning opportunities within the medical cannabis sector, especially following its reclassification in April,” said Jörg Sellmann, Managing Director of Demecan.
The new funds will be used, among other things, to strengthen the pharmacy distribution through innovative SaaS solutions and the online pharmacy platform www.herbery.de. Additionally, investments will be made in further internationalisation and product innovations.
The Osborne Clarke team that advised Demecan consisted of Nicolas Gabrysch, Maximilian Vocke and Dana Alpar (all Corporate / VC).
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