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Demecan On-Track To Hit Early 2022 Harvest After Fund-Raising Boost

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GERMANY’s sole domestic cannabis producer is expected to harvest its first crop in early 2022 after securing additional investment to complete its production facility.

Demecan, which was founded in 2017, is one of three companies permitted to cultivate cannabis in Germany by the Federal Institute for Drugs and Medical Devices.

Some 4,000 cannabis plants will be sowed in October at its new facility near Dresden, with the first products to be delivered early next year.

This follows a successful fund-raising round – in the ‘upper single-digit million range’ – from private and institutional investors, including the Futury Fund as well as existing shareholders, including the btov Private Investor Network.

Harvest As Quickly As Possible

Dr Constantin von der Groeben, Co-Founder and CEO of Demecan, told BusinessCann: “The investment is to used for further growth as well as the expansion of the production facility into Europe’s most modern facility for the cultivation and processing of medicinal cannabis.

“Under current conditions, Demecan plans to complete the manufacturing facility in the third quarter of 2021 and harvest as quickly as possible.”

Demecan is converting a former slaughterhouse on an 100,000 sq ms plot of land into an indoor production facility with office space and a laboratory.

Demecan’s cultivation facilities in Ebersbach, South East Germany

The halls are currently under construction with the installation of air filter systems, water tanks and around 150 video cameras.

When sowed 1,000 plants will grow in each of the four halls. The labour-intensive operation is expected to initially employ around 80 people.

Initially, Demecan aims to harvest up to one tonne of cannabis and its three founders believe that as the German market grows it will move towards its capacity of around 10 tonnes per year.

Last month Canadian company Tilray became the first of the three producers to deliver homegrown flower in to the market through its subsidiary Aphria. The third supplier is fellow Canadian company Aurora.

Seven Million Euros

The Federal Institute’s total permitted cultivation amount is 10.4 tonnes of medicinal cannabis over four years.

In April this year Demecan closed its latest multi-million Euro financing round, with Dr Adrian Fischer, physician, co-founder, and CEO saying: “It is Demecan’s mission to guarantee the nationwide supply of high-quality medical cannabis for the benefit of patients in Germany.

“Therefore, we not only focus on the cultivation of medical cannabis but are also active in the field of R&D to develop new and innovative dosage forms.”

Demecan says it intends to establish a subsidiary in the state of Hessen with the aim of establishing a dedicated medical cannabis research cluster.

In 2019, the Berlin startup has received seven million euros in a Series A financing round.

Half of the investment came from the private investor network of the European venture capitalist btov Partners. The other half came from a German entrepreneurial family.

The post Demecan On-Track To Hit Early 2022 Harvest After Fund-Raising Boost appeared first on Cannabis Business Executive - Cannabis and Marijuana industry news.


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