EuroLife Brands Inc (CSE:EURO) (OTCMKTS:EURPF) revealed it is mulling a plan to split away its data analytics business from its re-focused European hemp and CBD operation to enhance shareholder value.
The analytics assets would go into a special purpose entity, named BioScience NewCo, that would be operated as a stand-alone and could ultimately be spun out to shareholders, the company said.
BioScience NewCo would be led by current EuroLife CEO, Shawn Moniz, and would bridge the gap between Cannabis Education, Patient R&D (research and development), and Pharmaceutical R&D partner opportunities within Europe.
"According to Statista, the worldwide pharmaceutical market generated revenue in excess of US$1.2 trillion in 2018," noted Moniz.
"With aging population demographics and attitudes towards prevention, and general health and wellness on the rise, the various opportunities afforded within the space are buoyant and poised for continued growth," he said.
"Having invested substantial financial capital alongside thousands of man hours into the development of the Cannabis data analytics platforms, we are of the belief that we have built a solid framework that is ripe for monetization and from which further growth can be built upon."
Last week, the group revealed it was looking to build on its success in Germany to break into the thriving Swiss market, and had set up a due diligence trip to include strategic meetings with leading hemp companies.
"Working alongside our European counterparts in relation to our recently announced plans for German HempCo and the Dresden cultivation facility in devising an integrated and synergetic 2020 EuroLife roadmap, I am pleased to see the continued and dedicated focus from all parties involved as we strive to achieve our stated goals," said Derek Ivany, chairman of Eurolife's advisory board.
"Decoupling the cultivation operation and the associated down-stream business segments, from those of our digital educational technology assets, will provide for greater shareholder value as both verticals will be allowed to thrive in their related yet distinct consumer markets."
"... more singularly focused operations should allow for additional flexibility in pursuing new and tertiary business opportunities for each stand-alone entity," added EuroLife.
In addition to the ongoing operation of the Cannvas.Me cannabis data platforms, BioScience NewCo intends to examine other potential lines of growth. These include:
- Funding, formulating and conducting R&D on new and novel biopharmaceutical and nutraceutical therapeutics using cannabinoids and mushrooms;
- Using the robust depository of captured cannabis data analytics to assist pharmaceutical companies in assessment of marketing and product strategy;
- Partnerships and data sharing opportunities with synergistic companies in the cannabis space;
- Licensing and white-labeling opportunities with private and public sector organizations;
- Data capture and analytics services for clinical trial and clinical trial design studies;
It is worth noting that the potential arrangement is subject to, among other things, finalizing the economic benefit analysis, adequate funding, as well as approval by not less than two-thirds of the votes cast at a special meeting of EuroLife shareholders.
Shares fell around 9% in Toronto to C$0.050.
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