AusCann's new secured loan agreement with ECC

AusCann Group Holdings Limited (ASX: $AC8) has entered into a new secured Loan Agreement with European Cannabis Corporation Limited (ECC) to provide an additional €1m investment for HAPA Pharm BV, a 100% owned subsidiary of ECC. The loan will support the launch of the HAPA 2.0 products in Germany from January 2024, and the agreement includes security as collateral. The fully paid ordinary shares of AusCann remain suspended from quotation on the official list of ASX until the Company has re-complied with Chapters 1 and 2 of the Listing Rules.

Executive commentary on recent developments and future plans

The Board of AusCann is pleased to announce the new secured Loan Agreement with ECC, which will provide the necessary working capital for the launch of HAPA 2.0 products in Germany. This strategic move aligns with our commitment to seeking opportunities that add value to the Company and enable us to seek re-quotation of our shares on the official list of ASX. Additionally, the collaboration with HAPA has been instrumental in expanding our global reach and bringing EU-GMP-certified cannabis products to the Australian market. We are optimistic about the outlook for 2024, with the anticipated launch of HAPA 2.0 products and the strategic developments in response to the expected change in Germany's Narcotic Drugs Act. Furthermore, the expansion into Poland signifies our dedication to reinforcing our position as a leader in the European medical cannabis industry.

Summary of AusCann's recent announcement and future outlook

AusCann Group Holdings Limited (ASX: $AC8) has secured a new secured Loan Agreement with European Cannabis Corporation Limited (ECC) to provide an additional €1m investment for HAPA Pharm BV, a 100% owned subsidiary of ECC, to support the launch of the HAPA 2.0 products in Germany from January 2024. The agreement includes security as collateral. The Company's fully paid ordinary shares remain suspended from quotation on the official list of ASX. The collaboration with HAPA has facilitated the strategic expansion into Australia, bringing EU-GMP-certified cannabis products to the Australian market. Looking ahead, the anticipated launch of HAPA 2.0 products and the strategic developments in response to the expected change in Germany's Narcotic Drugs Act, as well as the expansion into Poland, reflect AusCann's commitment to innovation and its position as a leader in the European medical cannabis industry.