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Be the first with the news that moves the market- AgraFlora (CSE:AGRA) subsidiary, Farmako GmbH, has entered into a binding supply term sheet with Zenabis Global subsidiary, ZenPharm
- Under its conditions, Farmako will distribute medical cannabis patients in Germany, using cannabis flower from ZenPharm
- Over the three year agreement, Farmako will distribute approximately 1,500 kilograms of cannabis flower in Germany
- ZenPharm’s shipments to Farmako should begin in 2020’s fourth quarter
- AgraFlora (AGRA) is up 8.33 per cent and is currently trading at C$0.065 per share
AgraFlora (CSE:AGRA) subsidiary, Farmako GmbH, has entered into a binding supply term sheet with Zenabis Global subsidiary, ZenPharm.
The term sheet provides the foundations for a supply agreement, which the companies expect to complete soon.
Under the agreement, ZenPharm will provide Farmako with EU-GMP quality medical cannabis flower, cultivated by Zenabis. Farmako will distribute the flower to its medical cannabis patients in Germany.
ZenPharm’s supply will consist of high-potency THC flower, and a balanced THC and CBD flower. The company’s management believes that these are two categories that are currently in high demand in Germany.
Farmako’s CEO, Katrin Eckmans, said that she was very impressed after visiting Zenabis’ Canadian facility in late 2019.
“We have visited many facilities, and Zenabis’ ability to maintain the highest standards of professionalism and quality throughout the organisation, even while operating on a massive scale is commendable.
“Zenabis’ professional approach to growing cannabis, combined with Natrix Sciences’ experience with innovative and complex pharmaceutical products in Malta, is a perfect interplay to provide a broad portfolio of high-quality medical cannabis products for patients in Germany and across Europe,” she said.
ZenPharm’s shipments of cannabis flower to Farmako should begin in 2020’s fourth quarter.
Over the course of three years, Farmako will distribute approximately 1,500 kilograms of cannabis flower in Germany. The company plans to sell it under its own brand, through a roster of German pharmacies and doctors.
Since legalising medical cannabis in March 2017, Germany has quickly become one of its largest markets in Europe. The country has set a standard for other European nations, which are using Germany’s regulatory framework as a template.
Since 2017, Germany’s market for medical cannabis has more than doubled every year. If this encouraging rate continues, Farmako will have no shortage of customers to distribute to.
AgraFlora (AGRA) is up 8.33 per cent and trading at C$0.065 per share, as of 10:55am EDT.
