Sunday 20 October 2019

Fanning in windfall from medical cannabis deal

Irish businessman Oisín Fanning
Irish businessman Oisín Fanning
Samantha McCaughren

Samantha McCaughren

Irish businessman Oisin Fanning is to receive a hefty finder's fee for his role in the takeover by a Canadian medical cannabis company of a Uruguayan firm that has obtained a licence to produce medical cannabis.

According to a filing from Khiron Life Sciences, a company listed on the Toronto Stock Exchange with core operations in Columbia: "upon the closing of the acquisition, a finder's fee of 420,000 common shares will be paid to Oisin Fanning."

The company's share are trading at CA$3.15 (€2.10) equating to a windfall of CA$1.32m (€880,000).

Under the deal, Khiron will own Dormul, a company with a cultivation capacity of up to 120 tonnes and 170,000 plants in Uruguay.

To date, Khiron has been focused on the Latin American market but in recent days has made its first acquisition in Europe, buying Italian company Canaplife.

Fanning is a former stockbroker and ex-CEO of Smart Telecom.

He now runs Irish oil and gas explorer San Leon Energy, which is planning to return up to $30m (€26.5m) to shareholders via a share buyback.

San Leon ran into trouble getting payments it was owed from a project in Africa last year, but the payments have now started to come through. San Leon's biggest shareholder is Toscafund.

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