Portuguese fund Iberis Capital invests 2 million in Eurox Group

The EUROX Group announced that it had obtained 4,4 million euros in capitalization by private investors. The company, which is headquartered in Germany and has operations in the of medical cannabis in several European countries, including Portugal, highlighted the investment of two million euros by the Portuguese fund Iberis Capital.

The Eurox Group (“EUROX”) raised a total of 4,4 million euros from new and existing investors, with a premium of approximately 62% of its fundraising in July 2021. According to an announcement by Seed Inovations Ltd., a listed company in alternative investment markets with a fast-growing portfolio of businesses and a focus on medical cannabis, health and well-being, existing investors (including Seed) invested an additional €2,4 million by subscribing to a new class of preference shares on EUROX (with liquidation reference).

Portuguese investments

The operation was marked by the entry of Iberis Capital, a private equity management fund operating in Portugal, with more than 230 million euros of assets under its management. This new fund, which made its initial investment in the EUROX Group through the Iberis Bluetech Fund, has subscribed €2 million through Secured Convertible Loan Securities ('CLN') and marks its first investment in the medical cannabis sector. This CLN is not remunerated, is guaranteed against the assets of EUROX and will be converted into Preference Shares immediately at the option of Iberis; on the fifth anniversary of this CLN; or through a new fundraising of €10 million or more.

The Eurox Group owns the entirety of a Portuguese subsidiary which, according to the statement, already has a provisional license (often called a “pre-licence”) granted by Infarmed, the Portuguese National Authority for Medicines and Health Products. Eurox Portugal is currently building its cultivation facilities to ensure vertical integration and long-term supply independence. Bernhard Babel, co-manager EUROX, commented that he was “very pleased to announce our most recent successful fundraising and, in particular, our new relationship with Iberis Capital. Being well funded will allow us to step up our investment in pharmaceutical development.”