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 senior 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 continuing its growth strategy. Recently, the Munich-based company 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 a €3 million investment in the company. This came as part of the acquisition of CannaCare Health, which also includes 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

A significant step for SynBiotic is also the involvement of Daniel Kruse. 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. Already part of the SynBiotic Group, Kruse will now further strengthen the management team as an executive director. He is well known for his leadership roles in various hemp organizations and will join Lars Müller in driving SynBiotic's growth.

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 bring valuable insights and know-how. Through these strategic steps, SynBiotic SE positions 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 as well as the marketing of hemp, CBD and cannabis products along the entire value chain, the company is committed to sustainable growth. In doing so, SynBiotic has particularly focused on the European market and is pursuing expansion along various business lines such as hemp, CBD, medical cannabis and stimulant cannabis.

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

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

For fiscal 2023, we expect an overall increase in sales that is likely to be in the higher 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 €0.2 million in the first half of 2023. For the full year 2023, Cantourage is targeting revenue growth in the higher double-digit percentage range compared to the previous year. In addition, the company aims to break even at EBITDA level.

Cantourage Group SE is exploring various options to finance further growth, including capital market financing. The company is showing determination 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 further fueled by the German government's gradual release plans for cannabis. In light of these developments, the key question is which player will ultimately prevail 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 real gold rush atmosphere as a result of the release of cannabis. However, the initial hype has now subsided and the market is in a period of consolidation. An example of this is Halo Collective's stock, which has seen its value drop by over 99.5 percent in the past year. As of Aug. 24, 2023, the value stock is trading for less than one cent, highlighting the current challenges Canadian cannabis industry faces.

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