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Stenocare
Danish medical cannabis oil producer Stenocare has exited its cultivation facility in Denmark, just four years after it was completed.
In November, the company announced plans to reposition its business model, moving away from vertical integration and towards a ‘focused trading model’.
As such, the company has chosen to offload its cultivation facility and will now focus on collaborating with trusted partners in Canada, Australia, Denmark to supply the raw cannabis to produce its oils.
Stenocare says it is adapting to the evolution of the medical cannabis industry, which has ‘shifted towards outsourcing and strategic partnerships with specialised suppliers for efficiency and quality’ since its facility was completed.
In 2021, the company announced that its state-of-the-art cultivation facility was fully operational and required no further investment, ensuring that the company could meet its supply needs for the coming 4-5 years.
At the time, it said the facility’s potential annual commercial value was estimated at DKK 150m, excluding imported products.
Now, the Stenocare has offloaded the site in an arrangement which will see it receive ‘no cash proceeds’ but will see all of the related costs from the site relieved.
This reportedly includes a substantial long-term lease and equipment lease, equivalent to a financial obligation of around DKK 14m over the next six years.
According to the company, this will lead to operational cost savings of around DKK 4m this year alone.
As part of its new strategy, dubbed ‘Stenocare 3.0’, the company will also change its headquarters address from the Randers facility in Jutland to the Værløse facility near Copenhagen.
It comes as the company completed a new capital raise to fund this shift in direction. On January 22nd, Stenocare announced the outcome of its conditional rights issue, which was subscribed to approximately 37.7%.
Additional guaranteed commitments from Exelity AB amounting to 7.3% will be activated, bringing the total subscription rate to 45%. This will provide the company with DKK 9.1 million in gross proceeds to support its strategy.
In addition to funding commercial expansion, part of the net proceeds will be used to service a convertible loan of DKK 2.8 million, including interest and installments.
Thomas Skovlund Schnegelsberg, CEO of Stenocare, said: “We have successfully raised capital for the new Stenocare 3.0 strategy, marking the beginning of our transformation into a trading company with a strong focus on innovation, driving sales growth, and expanding market share.
“While the first milestone-relocating our headquarters-may seem like a simple step, it signifies a pivotal moment in our strategic shift. With the exit from the cultivation facility, we are now fully committed to this exciting new chapter of growth and success.”
Aurora, Demecan
Canadian cannabis giant Aurora Cannabis and Germany’s Demecan have both announced the launch of their first domestically grown cannabis products into the German medical market.
The passage of CanG in April 2024 saw the severely restrictive cap on those licensed to grow cannabis in the country, alongside the tender process to receive a domestic cultivation license.
In July, Business of Cannabis reported that Tilray, Aurora and Demecan, had all been granted the first licenses in half a decade to cultivate cannabis in Germany.
These three operators were all winners of the original tender to produce medical cannabis under strict production quotas for the German government.
Now, Aurora and Demecan’s first German-grown products are becoming available for German patients.
This week, Aurora announced the launch of IndiMed, a new brand manufactured at Aurora’s EU-GMP-certified facility in Leuna, Germany.
IndiMed’s first product to launch is Island Sweet Skunk, a sativa-dominant dried flower strain with 20% THC and less than 1% CBD, expected to be available as of January 27.
Meanwhile, Demecan also announced that it will now directly distribute its medicinal cannabis flowers, originally produced for the Federal Institute for Drugs and Medical Devices (BfArM).
After successfully supplying Germany’s Cannabis Agency, the company will now independently manage the distribution of its Type 1 and Type 2 medical cannabis flowers.
By eliminating middlemen, the company aims to simplify access, reduce costs, and ensure pharmacies and patients benefit from lower prices while maintaining high-quality standards.
Cantourage
Following the publication of its Q4 results earlier this month, numerous financial research firms have reaffirmed their positive outlook for the company.
NuWays Research has raised its price target to €12.50, maintaining a BUY recommendation. With a favourable EV/EBITDA multiple of 6.3x for FY25, it says the company remains an attractive investment in Europe’s rapidly evolving medical cannabis market.
The research firm highlighted Cantourage’s expected EBITDA margin of 7.5%, with a gross margin exceeding 37%, marking a major milestone in the company’s path to sustained profitability.
Despite political uncertainties surrounding Germany’s recreational cannabis policy, NuWays views Cantourage as insulated from regulatory risks, given its exclusive focus on the medical cannabis sector.
Elsewhere Montega Research also reaffirmed its BUY rating for Cantourage, raising its price target from €11.50 to €12.00, citing strong revenue growth, sustained market momentum, and strategic expansion efforts.
The report also highlights Cantourage’s application to participate in Germany’s new research-based adult-use cannabis pilot project. If approved, this initiative could further enhance the company’s market position by allowing it to distribute cannabis through licensed retail outlets, a move that aligns with Germany’s evolving cannabis legislation.
Montega remains optimistic about Cantourage’s future prospects, forecasting a significant increase in revenue to over €100 million by 2025.
“}]] Stenocare Danish medical cannabis oil producer Stenocare has exited its cultivation facility in Denmark, just four years after it was completed. In November, the company announced plans to reposition its Read More
