STRATEGY OF HEMP & HEALTH S.A.
for 2024-2025
The strategy of HEMP & HEALTH S.A. ("Issuer" or "Company") is based on operating in complementary areas that lie at the intersection of two sectors: cannabis ("HEMP") and health ("HEALTH").
In the coming years, the Company plans to focus, within its Group of Companies ("CG"), on establishing and managing a full medical cannabis supply chain: from its own cultivation to the importation, processing and distribution of medical cannabis.
1 Own cultivation
The Issuer intends to become the Polish leader in the cultivation, either in-house or under contract, of medical cannabis containing more than 0.3% THC, i.e. so-called medical marijuana. Cultivation will be carried out through a special purpose company established for this purpose and/or investments in external entities. Such companies may be located both in Poland and abroad.
2 Pharmaceutical plant
A complementary link in the supply chain will be the launch of an in-house pharmaceutical plant, which will be able to confer EU-GMP1 to products that do not have this status - mainly of non-European origin. This type of service will also be able to be offered to non-GM and foreign entities as a subcontract. The pharmaceutical plant will have the ability to import, process, provide packaging services and EU GMP certification, as well as stability testing. As part of these services, the Issuer plans to sell products under its own brand, as well as in a private label or white label formula.
3 Distribution
The Company intends to distribute medical cannabis based on a pharmaceutical wholesaler belonging to the Group: THC Pharma SA. Such distribution may be based both on products registered in Poland by other entities and on the product registration obtained by the Issuer as MAH2. In this case, the product may originate both within and outside the European Union. The Issuer does not exclude the possibility of distribution outside Poland.
4. research and development work
The Issuer takes into account the possibility of co-financing research to develop a cannabis-based medicine. This could take place in different modes (e.g. medical experimentation or drug development and clinical trials) conducted on behalf of the Issuer or as part of consortia. Research would include cannabis drugs based on both THC and CBD and other cannabinoids.
5. Activity within the HEMP and HEALTH segments
The Issuer does not rule out opportunistic investments in the cannabis or health industry that could increase and diversify revenues or provide synergies within the Group.
6. Abandonment of CBD distribution
At the current stage of EU regulations related to so-called 'novel food'1, the Company does not envisage distributing CBD products under its own brand and does not plan to engage in hemp cultivation containing less than 0.3% THC, i.e. targeting CBD.
7 Follow-up activities
The Company also plans to carry out the following activities over the coming two years:
1. acquire a strategic investor to implement the strategic objectives described above;
2. achieve registration as an MAH of a pharmaceutical raw material containing more than 0.3% THC, i.e. medical marijuana;
3. market medical cannabis in the form of dried and/or extracted products;
4. prepare the facilities and scalability of the business in the event of legalisation of recreational marijuana in Poland or in other European Union countries;
5. in the event of having surplus funds, allocate them to measures to counteract capital loss (e.g. due to inflation).
In the opinion of the Management Board, the updated and described above strategy of the Issuer will translate into dynamic development of the Company and increase of its value.