Investment company FastForward has invested €3m (£2.5bn) in German medical cannabis company, Eurox Group.
The investment will provide FastForward with ‘direct exposure’ to a brand focused on Europe’s largest medical cannabis market, the company said.
Germany’s medical cannabis market is projected to be worth more than €840 million by 2024.
The investment is the result of many months of work and is aligned with FastForward’s investment strategy that includes both liquid and non-liquid assets.
Chief executive officer, Ed McDermott, said:
“This is a meaningful private equity deal and it represents an important addition to FastForward’s portfolio of investments in Europe’s growing cannabis-sector.”
Eurox has the capacity to provide a complete ‘made in Germany’ offering of medical cannabis extracts and isolates, Alfredo Pascual, VP of Investment Analysis of FastForward, said.
“As a company built from the ground up in Europe and led by a European management team, we see immense potential in Eurox to become the next vertically integrated medical cannabis leader on the continent.
“We were attracted to Eurox’s investment opportunity by a number of factors including the company’s prudent cash burn rate to date and realistic plans”Alfredo Pascual
Eurox has an exclusive partnership agreement with EU GMP-certified German pharmaceutical company, Dr. Reckeweg.
The medical cannabis company also holds a significant minority ownership of London-based Integro Medical Clinics.
Bernhard Babel, co-Managing Director of Eurox, commented:
“Our goal has always been to achieve consistently high product quality, stable supply and operational excellence to serve our wide customer base.
“The Eurox team and I are very much looking forward to this new partnership with FFWD which is the final in a series of fundraises giving us a solid capital base upon which to build our business.”