On Friday, April 14, Swiss Medical Farming AG agreed to be integrated into the SGR Group, making it another Swiss cannabis producer acquired by the Group in the last three years. The acquisition of the Zurich-based cannabis company is of great strategic importance, as Swiss Medical Farming has established itself as a quality brand in Switzerland, but also in other European countries.
In addition to meeting the high medical standards, the newly acquired subsidiary is characterized by the fact that it has achieved above-average growth with its business model in recent years. The company plans to increase its THC production capacity in a short period of time according to a similar, improved concept. Currently, the Group already has options for more than one million square meters of cultivation area and plans to build it up in a short time.
Another significant aspect of this takeover is the positive response to other takeover candidates from the industry. If a merger is worthwhile for an established brand such as Swiss Medical Farming, it underlines the size and opportunities that the SGR umbrella group can also offer other market participants. The consensual takeover of SMF AG is an indicator that the Swiss Green Rose Group has exceeded a critical size and is increasingly establishing itself as a wholesale market participant.
After the acquisition, experts expect a positive adjustment of the Group’s valuation. Currently, the company’s management is not announcing exact figures, as it is in the process of preparing for the IPO. The exact date will not be announced until shortly before the IPO, but the plan is to take the step onto the trading floor by 2024. Access to the capital market is an important step towards enabling the public to participate in the Swiss Green Rose brand. It is expected to be one of the largest IPOs in the cannabis industry, with a market capitalization in the lower double-digit billion range at opening day.
The parent company, which is listed on the London Stock Exchange, is currently issuing a limited number of shares in a pre-IPO financing round. There is a great deal of interest from large institutional and private investors, but the Group’s top management announced that it attaches importance to diversifying shares among private investors, according to the Group Executive Board: “Our success is based on our conviction that the medicines we develop help our fellow human beings. Our work is dedicated to the citizens, which is why we as Swiss Green Rose also want to be perceived as a company by the population. A broad core investor base among European citizens is important to us. We are looking forward to taking the step onto the floor together with a broad community.” The financing round is handled by Global Stock Trade GmbH, interested parties can obtain information from the companies customer service and subscribe to shares.