A start-up in the middle of the grey zone

Lars Müller wants to open up the young market for cannabinoids with Synbiotic. Above all, this requires perseverance.

Lars Müller can't help but let out a short groan when asked how much convincing he has to do with the authorities for his start-up. Müller briefly turns his gaze away from the camera on his laptop and looks up at the ceiling, then says: "On a scale of one to ten, it's probably more like an eleven." Despite numerous discussions, much of what his start-up does is still in the gray area. "I'm often in contact with the food authorities. They think we're selling drugs on the internet," he says.

The reason for the mistrust: His company Synbiotic manufactures products made from cannabinoids, which quickly sounds like cannabis and weed, even though he is on a completely different path. He produces dietary supplements - and that is precisely what means a constant battle for him, with lawyers against the authorities. "Essentially, they write us nasty letters and we write nasty letters back." In the meantime, his team of lawyers is very well positioned. For the founder, however, it is also a battle against politically entrenched views and for the acceptance of the population - because that is precisely who Müller wants to become his potential customers one day.

With Synbiotic SE, Müller wants to build a Europe-wide cannabinoid empire, or as he puts it: "We want to become the leading provider of all cannabinoid-based products in Europe." A lot of educational work is needed first. The terms cannabinoids, cannabis, THC and CBD are too often confused: cannabinoids are found in many plants, not just hemp. The best-known cannabinoid is probably THC, if only because of its intoxicating effect. Another cannabinoid is CBD, which can help with cramps and inflammation. But cocoa beans and hops, for example, also contain cannabinoids that have no intoxicating effect. Müller is targeting these.

A prominent investor is already on board

Research into this topic is still in its infancy and a lot of pioneering work needs to be done. However, Lars Müller is already convinced that the plant-based products that can be made from it are far superior to some chemical products. He therefore wants to find more and more possible applications and use more and more plants for this purpose. But how does he get there?

Four years ago, Lars Müller became one of the few cannabis patients in Germany at the time. Because he suffered from bronchial asthma, he was allowed to use cannabis as a medicine. For a long time, it was not easy to get the right prescriptions. "The doctors took a very close look back then," he recalls. Today, there are an estimated 100,000 cannabis patients in Germany. There are no official statistics, but Germany is already considered a pioneer in Europe.

If others absolutely want to get stoned on THC, then that's their discussion. My job is to find cannabinoids that have a good effect but don't make you dizzy.

Synbiotic CEO Lars Müller

It was during this time that Müller's interest in cannabinoids was finally ignited. In 2018, he bought the then small brand Hempamed with Solidmind Group GmbH, which he founded. Since then, he has been producing and selling various oils, capsules and pastilles made from the cannabis plant. The oils are said to have anti-inflammatory and anticonvulsant properties, CBD capsules are said to be beneficial for the body and the pastilles contain vitamin C or B6 as well as CBD.

Müller's Solidmind Group GmbH has been part of Synbiotic SE since last summer and is therefore listed on the stock exchange. Until then, Synbiotic was just an empty shell with no operational business. Behind the listed company is the prominent investor Christian Angermayer, who made Lars Müller CEO immediately after the takeover. "We are on the lookout for exciting companies around the world, want to buy in where it fits or develop the next products ourselves," says Müller, describing the company's long-term goal.

Politics must play its part

To date, Synbiotic SE has largely consisted of the acquired Solidmind Group GmbH. According to a securities prospectus dated December 1, 2020, it also holds 50.004% of the shares in Cannexo Pharma GmbH and 25% in Pharmaceuticals Limited. Cannexo GmbH will later become a B2B vehicle for all brands from the Synbiotic world. So far, however, the company is still operating under the radar. Founded back in 1989, Pharmaceuticals Limited produces products in the skincare sector, among others.

For many founders, going public represents an exit, but for Müller it is just the beginning. "As a listed company, we do have to comply with certain regulations, but we also have a completely different kind of traction," he says. He was able to raise 6.4 million euros through a capital increase in December. His SE is now listed on the primary market of the Düsseldorf Stock Exchange, on the Frankfurt Stock Exchange and on the Xetra trading platform.

Can Müller's plan work? Politics and the judiciary have recently played their part - at least a little: the UN Commission decided to remove cannabis from the list of the most dangerous drugs and the European Court of Justice ruled that CBD is not a narcotic. "These decisions give us the opportunity to pursue our mission even further," says Müller, who doesn't really want to get involved in political discussions. This is because they often revolve around the cannabinoid THC. "If others really want to get stoned from THC, then that's their discussion. My job is to find cannabinoids that have a good effect but don't make you dizzy."

Müller therefore prefers to talk about a multi-billion market in which he would like to have as large a share as possible with Synbiotic SE. "We have a good 750 million people in Europe, 150 million of them suffer from sleep problems, 120 million regularly complain of pain and up to 80 million suffer from anxiety disorders." If these people can one day be treated with a product based on cannabinoids instead of chemical medicines, Müller's calculations may work out: his company could then earn a lot of money and cannabinoids would finally get out of the gray area.