TORONTO, May 15, 2019 /CNW/ – Cannvas MedTech Inc. (“Cannvas” or the “Company”) (CSE: MTEC) (Frankfurt: 3CM) (OTCPK: CANVF), a leading digital cannabis education and analytics company, is pleased to announce it has undertaken expansion plans across the European market, implementing a similar revenue growth strategy to the one it successfully followed to enter the U.S. space.
“The Cannvas executive team has spent a significant amount of time in Europe advancing the need for cannabis education directed at consumers and health care practitioners coupled with analytics to better understand a rapidly-growing cannabis market across the continent,” said Steve Loutskou, Chief Operating Officer, Global Markets, Cannvas MedTech. “With deep roots in countries such as Greece and Portugal, our executive team is well-positioned to leverage key contacts within those medical markets and ease expansion plans within those regions.”
Similar to recent U.S.-based partnerships with the likes of Empower Clinics (CSE: CBDT) (FRA: 8EC) (OTC: EPWCCF) and US Cannabis Pharmaceutical Research and Development, Cannvas plans to pursue strategic collaborations with European entities active in the cannabis and health sciences space, including physician’s offices, health clinics and pharmacies, insurance and government agencies, medical and educational institutions and more.
Cannvas plans to aggressively market its Cannvas Kiosk concept to EU nations as a cost-efficient and data-driven avenue of education delivery to citizens where they learn, work, eat and live. Focused first on establishing a kiosk network across health clinics, pharmacies and hospitals, the Cannvas team will also be reaching out to retailers, entertainment facilities, educational institutions and government agencies.
While Cannvas expects to derive revenue from its kiosk network, it also expects a receptive audience to its white label solutions for cannabis education, providing organizations with evidence-based cannabis learning modules powered by its Cannvas.Me platform. Sectors to be targeted for education solutions include medical, retail, cannabis production and distribution, government and higher learning. Cannvas also expects a robust demand for contextual media and ad placement across its platforms as an additional driver of revenue.
Further to its announcement in 2018 regarding expansion into Germany, one of the fastest growing medical cannabis marketplaces in the world, Cannvas is exploring ideal locations to potentially set up operations in one or more central European locations, pending the outcome of ongoing high-level conversations with potential EU partner organizations.
Brightfield Group projects Europe’s legal medical cannabis sales to reach nearly $8 billion by 2023, while London-based Prohibition Partners forecast the European medicinal cannabis market to be worth US$65.6 billion by 2028. Prohibition Partners believes the number of patients in the three biggest European markets – Germany, Italy, and the Netherlands – will rise from 130,000 in 2018 to 225,000 in 2019, with the cannabis industry in those three countries alone to be worth U$20.4 billion by 2028. The market intelligence agency says a lack of cannabis education has impeded patient access to cannabis in European countries such as the UK, setting the stage for strong growth of the Cannvas.Me digital cannabis education platform.
Additionally, The Company proposes to raise up to $750,000 through a non‑brokered private placement of up to 2,830,189 units at a price of $0.265 per unit. Each unit will consist of one common share and one transferable warrant exercisable at $0.35 per share for a period of 2 years, provided that in the event that the closing price of the Company’s common shares on the CSE is $0.40 or greater per share during any 20 non-consecutive trading day period at any time, the warrants will expire at 4:00 p.m. (Vancouver time) on the 30th day after the date on which the Company provides notice of such accelerated expiry to the warrant holders, and the warrant holders will have no further rights to acquire any common shares of the Company under the warrant. The proceeds will be used for developing the technology platforms and general working capital.
About Cannvas MedTech Inc.
Cannvas MedTech is a leading digital cannabis education and analytics company delivering accessible and evidence-based education while harnessing the power of data to paint a clearer picture of cannabis consumption across Canada.
No stock exchange or securities regulatory authority has reviewed or accepted responsibility for the adequacy or accuracy of this release.
Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Issuer’s future plans, objectives or goals, including words to the effect that the Issuer or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. For a description of the risks and uncertainties facing the Company and its business and affairs, readers should refer to the Company’s Management’s Discussion and Analysis and other disclosure filings with Canadian securities regulators, which are posted on www.sedar.com.
Subscribe to our news and updates