Fund invests €2M in German medical cannabis producer in Alentejo
Following this funding, Eurox Group will "centralise in Portugal important areas, such as research in plant genetics, product extraction processes and molecular and biological applications".
Private equity fund manager Iberis Capital has announced it has invested two million euros in Eurox Group, a German company that produces medical cannabis and is building a facility in Grândola (Setúbal).
In a statement sent to Portuguese news agency Lusa on Wednesday, Iberis Capital said it had made the investment through the Iberis Bluetech Fund, which supports Research and Development (R&D) and is recognised under the SIFIDE programme – Entrepreneurial R&D Tax Incentives System.
“This investment is part of a round of capital raising amounting to 4.4 million euros, which Eurox Group will now apply to a new Research & Development (R&D) unit to be developed in its subsidiary Canneurox Portugal,” the company indicated.
Following this funding, Eurox Group will “centralise in Portugal important areas, such as research in plant genetics, product extraction processes and molecular and biological applications,” the statement said.
“This will be the new Eurox Group R&D ‘hub’ in Europe and is expected to create conditions for the company to become the European leader in the market for cannabis for medicinal purposes,” it stressed.
Contacted by Lusa, a source from Iberis Capital revealed that the Eurox Group medical cannabis unit in the municipality of Grândola has been “under construction since June 2021”, with the investment now made to “finance the cutting-edge R&D that is being carried out”.
During the first phase of the new facility, whose construction should be “completed by early October”, Eurox Group expects to create between 15 and 20 new direct jobs in Portugal.
“We are very pleased to support Eurox Group in developing the R&D capacity at its Portuguese operation. This includes important new areas for the development of knowledge in this area,” said Luís Quaresma, of Iberis Capital, cited in the statement.
Bernhard Babel, from Eurox Group, meanwhile, welcomed the “new relationship with Iberis Capital”.
“Eurox will continue to focus on key projects, such as its Portuguese subsidiary, and will continue to expand its commercial business throughout Europe and channel market knowledge to its development programme,” he added.