Frank Otto invests EUR 3 million in SynBiotic SE

Frank Otto invests in SynBiotic SE and acquires CannaCare Health. Daniel Kruse strengthens the management team as Managing Director. Cantourage Group SE also reports strong figures from the medical cannabis sector for the first half of 2023

Munich - SynBiotic SE, a group of companies in the hemp and cannabis sector, is consistently pursuing its growth strategy. The Munich-based company recently acquired a majority stake in CannaCare Health GmbH, a renowned brand in the CBD sector, and appointed hemp market pioneer Daniel Kruse as Managing Director.

Multi-entrepreneur Frank Otto has underlined his confidence in the future of SynBiotic SE by making an investment of 3 million euros in the company. This follows the acquisition of CannaCare Health, which also includes the CBD network marketing subsidiary WellnetIQ.

For me, SynBiotic SE is the future of the European cannabis industry. No other group of companies takes such a holistic view of this exciting market.

Frank Otto, Entrepreneur

The participation of Daniel Kruse is also a significant step for SynBiotic. With his 30 years of experience as a hemp industry pioneer and founder of several hemp companies in Europe, he brings valuable expertise to the company. Kruse is already part of the SynBiotic Group and will now further strengthen the management team as Managing Director. He is known for his leadership role in various hemp organizations and together with Lars Müller will drive the growth of SynBiotic.

The proposed appointment of Frank Otto as a new member of the Board of Directors at the next Annual General Meeting underlines his commitment to SynBiotic's vision. As an experienced investor and entrepreneur, he will contribute valuable insights and know-how. Through these strategic steps, SynBiotic SE is positioning itself for future developments in the market.

SynBiotic SE pursues a clear strategy in the hemp and cannabis sector, ranging from cultivation and production to trade. With a strong focus on research & development and the marketing of hemp, CBD and cannabis products along the entire value chain, the company is committed to sustainable growth. SynBiotic is particularly focused on the European market and is pursuing expansion in various business areas such as hemp, CBD, medical cannabis and recreational cannabis.

Cantourage Group SE records strong revenue growth in the first half of 2023

Berlin - Cantourage Group SE, a leading European company in the production and distribution of medical cannabis-based products, announces solid figures for the first half of 2023. Revenue in this period amounted to approximately EUR 11.1 million*, an increase of around 90 percent compared to the same period last year (H1 2022: EUR 5.8 million).

For the 2023 financial year, we expect an overall increase in sales that is likely to be in the high double-digit percentage range compared to the previous year. At the same time, we want to remain operationally profitable at the current level.

Bernd Fischer, CFO of Cantourage

The company successfully continued the trend of profitable growth from the first quarter of 2023, with cumulative EBITDA of EUR 0.2 million in the first half of 2023. For the full year 2023, Cantourage is planning revenue growth in the higher double-digit percentage range compared to the previous year. The company is also aiming to break even at EBITDA level.

Cantourage Group SE is evaluating various options for financing further growth, including capital market financing. The company is determined to support its expansion plans and consolidate its position in the market for medical cannabis products.

Competitive market

The market for hemp and cannabis products is currently experiencing a period of intense competition. This competition is being fueled even further by the German government's gradual plans to approve cannabis. In view of these developments, the central question is which player will ultimately be able to assert itself in this competitive market environment.

Certain similarities and parallels can be drawn between the development of the Canadian cannabis market and the current situation. In 2018 and 2019, there was a veritable gold-rush atmosphere following the release of cannabis. However, the initial hype has now subsided and the market is in a phase of consolidation. One example of this is the Halo Collective share, which recorded a loss in value of over 99.5% last year. As of August 24, 2023, the stock is trading for less than one cent, which illustrates the current challenges facing the Canadian cannabis industry.

It remains to be seen whether the local cannabis industry will follow a similar path or whether an economic area characterized by a multitude of different suppliers will ultimately emerge.