• JV Majority Owned by Aleafia Health
Subsidiary• Pharmaceutical Wholesaler Acnos Leverages Network
of 20,000 Pharmacies• Aleafia Health to Ship Branded Medical
Cannabis Products• Purpose Built Cannabis Distribution and
Storage Facility Being Built at Acnos HQ• Company Also
Expecting First Ever International Shipment to Australia
Aleafia Health Inc. (TSX: ALEF, OTC: ALEAF, FRA: ARAH)
(“
Aleafia Health” or the
“
Company”) is entering the German medical cannabis
market via its joint-venture (the “
JV”) with
German pharmaceutical wholesaler Acnos Pharma GmbH
(“
Acnos”), together (the
“
Parties”). The JV entity will purchase Aleafia
Health branded cannabis oils for distribution to German pharmacies
and for clinical trial usage. Aleafia Health’s wholly-owned
subsidiary Emblem Cannabis Corp. (“
Emblem”) is the
majority shareholder of the JV with 60 per cent ownership with
Acnos owning the remaining 40 per cent.
The Parties have expanded the scope of the previously announced
JV formed by Acnos and Emblem, by leveraging the significantly
increased access to dried flower and extraction available to the
combined entity. The German medical cannabis market has grown
rapidly since legalization in 2017, and is projected to produce
revenues of $5 billion in 2025 for cannabis producers, according to
a report by Bank of Montreal. Market advantages in Germany include
significantly higher margins compared to the Canadian market and
reimbursement of patient purchasing costs through private and
public health insurance, which is almost entirely non-existent in
North America.
“We are delighted to soon see the export of our cannabis health
and wellness products to the world’s largest medical cannabis
market in Germany,” said Aleafia Health Chairman Julian Fantino.
“By leaning on our own core competencies of producing high-margin
value added products and leveraging the local supply chain
expertise of our outstanding partners, we have significantly
strengthened our international footprint and done so faster and at
a fraction of the cost of an acquisition.”
Acnos is an Aachen & Berlin-based pharmaceutical wholesaler
and distribution logistics company which specializes in branded
prescription pharmaceuticals, controlled drugs, and clinical trial
supply. Through its extensive German network, they have access to
110 distribution centres and 20,000 pharmacies, along with
extensive distribution channels across Europe. Acnos co-owner
Maximillian Claudel has been appointed Managing Director of the JV.
Acnos is currently building a dedicated cannabis product storage
and order fulfilment hub within its new headquarters.
“Germany will not just be the largest medical cannabis market in
Europe, it will also become the model example for Europe in regard
to regulations and quality standards, which is why Acnos welcomes
the partnership with Aleafia Health with great excitement,” said
Claudel. “The expertise developed in doctor and patient education
through its educational platform and clinic network, as well as the
outstanding production quality standard provided will be of great
advantage to the success of the JV.”
Aleafia Health has also entered into a supply and licence
agreement with the JV, allowing the JV to purchase and import the
Company’s branded medical cannabis oil. The first phase of orders
will meet or exceed 22,500 30 ml and 60 ml bottles, with a
significant ramp-up in supply expected in subsequent quarters. Both
parties will now provide initial funding to the JV in the amount of
700,000 €, proportionate to their respective ownership stakes.
Oils exported and sold to the JV will be grown and produced by
Aleafia Health. Extraction and packaging will occur in the Phase II
expansion of its Paris Facility, which includes a 5,000 sq. ft.
laboratory designed and being built to Good Manufacturing Practices
(GMP) standards, a requirement for pharmaceutical products to be
sold in the European Union market. Among the regulatory demands
required prior to the first export of Aleafia Health cannabis oils
are securing GMP Certification for the Paris Facility, and
obtaining the necessary import and export permits.
FIRST INTERNATIONAL PRODUCT EXPORT TO
AUSTRALIA
Additionally, the Company expects to soon complete its first
ever international product sale, with a planned shipment of Aleafia
Health medical cannabis products to Australia. The Company is now
in receipt of an import permit from the Australian Office of Drug
Control, and will complete the transaction upon receipt of a Health
Canada export permit.
For Investor and Media Relations, please
contact:
Nicholas Bergamini, VP, Public
Affairs416-860-5665IR@AleafiaHealth.comLEARN MORE:
www.AleafiaHealth.com
About Aleafia Health:
Aleafia Health is a leading, vertically integrated cannabis
health and wellness company with four primary business units:
Cannabis Cultivation & Products, Health & Wellness Clinics,
Cannabis Education, and Consumer Experience with ecommerce, retail
distribution and provincial supply agreements.
Aleafia Health owns three major cannabis product &
cultivation facilities, two of which are licensed and operational.
The Company produces a diverse portfolio of commercially proven,
high-margin derivative products including oils, capsules and
sprays. Aleafia Health operates the largest national network of
medical cannabis clinics and education centres staffed by MDs,
nurse practitioners and educators.
Aleafia Health maintains a medical cannabis dataset with over 10
million data points to inform proprietary illness specific product
development and treatment best practices. The Company is committed
to creating sustainable shareholder value and has been named the
2019 top performing company of the year by the TSX Venture
Exchange.
Forward Looking Information
This press release contains forward-looking statements and
information within the meaning of applicable Canada and United
States securities laws that are based on the beliefs of management
and reflect the Company’s current expectations. When used in this
press release, the words “estimate”, “project”, “belief”,
“anticipate”, “intend”, “expect”, “plan”, “predict”, “may” or
“should” and the negative of these words or such variations thereon
or comparable terminology are intended to identify forward-looking
statements and information.
The forward-looking statements and information in this press
release includes information relating to the forecasted market size
of medical cannabis in Germany, and availability of various
regulatory permits and licences. By their nature, forward-looking
statements involve known and unknown risks, uncertainties and other
factors which may cause our actual results, performance or
achievements, or other future events, to be materially different
from any future results, performance or achievements expressed or
implied by such forward-looking statements. Forward-looking
statements are made based on management’s beliefs, estimates and
opinions on the date that statements are made, and the Company
undertakes no obligation to update forward-looking statements if
these beliefs, estimates and opinions or other circumstances should
change. Investors are cautioned against attributing undue certainty
to forward-looking statements.