Conditional sales agreement for BP1

Since the Company's strategic decision to focus exclusively on the distribution, sourcing, and import of medicinal cannabis products - thereby discontinuing its own production activities - the Company has actively sought a buyer for its purpose-built production facility.

Following an extended period of dialogue, the Company is now engaged in advanced negotiations with a potential buyer of BP1, who has submitted a conditional sales agreement to DanCann Pharma for the acquisition of the facility (including its assets and real estate) for a total consideration of EUR 1.25 million (DKK 9.32 million).

The interested party - a European investment group with a primary background in the energy sector - has been in dialogue with DanCann Pharma and has expressed a clear intention to utilize the BP1 facility for the production of pharmaceutical-grade cannabis. The focus will be on servicing export markets, notably Germany, where regulatory frameworks are well-established and the demand for high-quality medicinal cannabis continues to grow.

The investment group has also indicated its intention to allocate additional capital towards the further expansion and commercialization of the BP1 facility, with the aim of bringing it to its full operational and commercial potential.

Terms for the conditional sales agreement

Under the terms, DanCann Pharma is expected to realize net proceeds of approximately EUR 0.75 million (DKK 5.60 million), reflecting the Company's assets excluding the real estate, which accounts for an estimated EUR 0.50 million (DKK 3.73 million) of the proposed transaction value. The real estate involved is owned by a third party and is expected to be transacted in parallel.

DanCann Pharma will receive 45% (DKK 2.18 million) of EUR 650,000 (DKK 4.85 million) upon closing, an additional 45% (DKK 2.18 million) upon vacating its remaining operations, including the packaging facilities of its subsidiary CannGros ApS, which is expected to occur within six months thereafter, and the remaining 10% (DKK 0.49 million) will be held in escrow for a period of 15 months as a warranty provision in favor of the buyer.

Furthermore, there is an additional upside linked to the buyer's successful reapproval (EU-GMP) of the BP1 facility. DanCann Pharma will, to the best of its ability and against remuneration, assist in this process. Upon successful reapproval, a bonus payment of EUR 100,000 (DKK 0.75 million) may be triggered.

The Company's liquidity will be strengthened by the return of the previously paid lease deposit, amounting to approximately DKK 0.6 million. In addition, the Company anticipates significant operational upsides from the relocation, which are expected to result in a substantial cost reduction.

It should be emphasized that the offer remains non-binding at this stage and is subject to a satisfactory final due diligence process, as well as alignment with the buyer's operational and strategic requirements.

To ensure focused dialogue and an efficient process, DanCann Pharma has granted the buyer exclusivity for a period of 60 days, during which the final terms and documentation may be concluded.

DanCann Pharma will provide further updates to the market as and when material developments occur.

Bridge loan from new investors

DanCann Pharma has secured a bridge loan of DKK 2 million from a small group of new investors, following the recently signed conditional sales agreement for BP1. The bridge loan provides near-term liquidity to secure the Company towards the expected first payments from the final sale of BP1.

New strategic direction: Maturity2028

In parallel, the Company is launching its updated corporate strategy under the name Maturity2028, outlining a clear roadmap toward sustainable, long-term value creation. Along with Maturity2028, DanCann Pharma intends to establish a group structure, including a name change of the main Company to DCP Group. The strategic pillars of Maturity2028 include:

• Achieving positive cash flow through operational focus and financial discipline
   
• Expanding and refining the product range to include more Rx products and a new Direct-To-Consumer (DTC) product range
   
• Exploring M&A opportunities given attractive options for market consolidation
   
• Strengthening investor relations and transparency with the market
   

For further information, please contact:

Jeppe Krog Rasmussen, CEO

E-mail: jkr@dancann.com

About DanCann Pharma A/S

DanCann Pharma A/S (SS: DANCAN) was founded in 2018 and is a Danish biopharmaceutical Company powered by cannabinoids. DanCann Pharma A/S is listed on the Spotlight Stock Market in Copenhagen/Stockholm. For more information, please visit: www.dancann.com

Forward-looking-statement:

Some statements in this release may contain forward-looking information. All statements, other than of historical fact, that address activities, events, or developments that the Company believes, expects, or anticipates will or may occur in the future (including, without limitation, statements regarding potential acquisitions and financings) are forward-looking statements. Forward-looking statements are generally identifiable by use of the words "may", "will", "should", "continue", "expect", "anticipate", "estimate", "believe", "intend", "plan" or "project" or the negative of these words or other variations on these words or comparable terminology.

Forward-looking statements are subject to several risks and uncertainties, many of which are beyond the Company's ability to control or predict, that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially from current expectations include, among other things, without limitation, the inability of the Company, to obtain sufficient financing to execute the Company's business plan; competition; regulation and anticipated and unanticipated costs and delays, the success of the Company's research strategies, the applicability of the discoveries made therein, the successful and timely completion and uncertainties related to the regulatory process, the timing and outcomes of regulatory or intellectual property decisions and other risks disclosed in the Company's public disclosure record on file with the relevant securities regulatory authorities.

Although the Company has attempted to identify important factors that could cause actual results or events to differ materially from those described in forward-looking statements, there may be other factors that cause results or events not to be as anticipated, estimated or intended. Readers should not place undue reliance on forward-looking statements. The forward-looking statements included in this presentation are made as of the date of this presentation and the Company does not undertake an obligation to publicly update such forward-looking statements to reflect new information, subsequent events or otherwise unless required by applicable securities legislation.

This disclosure contains information that DanCann Pharma A/S is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014). The information was submitted for publication, through the agency of the contact person, on 09.07.2025.