The firm plans to accelerate European expansion and clinical trials with the new funds.
German cannabis pharmaceutical Avextra AG has successfully completed a new round of funding, the company announced Wednesday.
The company has now raised over 20 million euros in the past 18 months through selling company shares and convertible loans, which now have all been turned into common shares, valuing the company at 100 million euros. The capital infusion came from those who already invested in the company, new investors, and company insiders.
The funds are earmarked for two primary objectives: the expansion of the company’s distribution network across Europe to introduce new cannabis-based medicines, as well as to improve upon its existing products through more patient studies and clinical trials.
“The continued support from our existing shareholders along with the participation of new institutional investors and strategic partners in this most recent capital raise, in the midst of the current market environment, is a testament to the differentiation of Avextra’s asset base, IP portfolio and operating strategy,” Avextra AG CEO Bernhard Babel said in a statement.
“This latest funding round will continue to support the Company as we execute on our two-pillar strategy and continue to deliver results for our shareholders.”
Located in Bensheim, Germany, Avextra AG has positioned itself as a notable pharmaceutical cannabis-based medicines provider in the European market — with the medical cannabis sector in Europe expected to be worth over 20 billion euros by 2030 due to its rapid growth, driven by an annual growth rate of 25-30%.
Germany is close to becoming the third country in the European Union to make cannabis legal. The government has agreed on a path forward and plan to vote on the new law this month, despite facing internal dissent and opposition. If passed, cannabis could be legal in the country by April.
Green Market Report wrote in last year that Canadian firms such as Tilray and Curaleaf were most likely to benefit from German legalization.
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