AgraFlora Organics International Inc.
(“
AgraFlora” or the
“
Company”) (
CSE: AGRA) (Frankfurt:
PU31) (OTCPK: AGFAF), a growth oriented and diversified
international cannabis company, is pleased to comment on Germany’s
medical and pharmaceutical cannabis industries.
Germany, Europe’s largest economy and the most populous European
Union (“EU”) member state introduced revised medical cannabis
legislation in March 2017, affording the Country’s geometrically
growing patient population access to an alternative form of
therapy. Germany represents one of the ultimate global potentials
for medical cannabis, due to:
- Estimated €420 billion in annual health care expenditures;
- 8,800,000 grams of total medicinal cannabis allowance in
2019;
- Median retail prices of between €20 and €25 per gram of medical
cannabis flower;
- Largest consumer base for cannabis among all EU nations;
- Forecasted cannabis market size of €7.7 billion by 20281;
and
- Full reimbursement of 60% of all medical/pharmaceutical
cannabis prescriptions.
Germany is presently the largest medicinal cannabis market in
Europe and can be divided into two principal submarkets:
- Pharmaceutical Cannabis Market: Representing cannabis-based
pharmaceutical drugs, including Sativex, Dronabinol and
Nabilone.
- Medical Cannabis Market: Representing plant-based and
plant-derived cannabis products (though Germany’s cannabis programs
are still being developed, they are projected to be among the most
robust in Europe).
Under current medical cannabis legislation, German public health
insurers, which cover 90% of the population, are mandated to
provide coverage for up to 140 grams of eligible cannabis
medications per month; making Germany one of the most potentially
valuable markets in Europe. Medical cannabis can be sold only
through registered pharmacies, of which there are about 20,000 in
Germany.
The German patient population for medical cannabis is
experiencing exponential growth, with over approximately 100,000
patients now active as of October 2019, an increase from
approximately 800 in 2017. Prohibition Partners has forecasted that
Germany will eclipse 1,000,000 eligible medical cannabis patients
by 2024.
On October 25, 2019 AgraFlora announced the acquisition of 100
per cent of the issued and outstanding shares of The Good Company
GmbH, the parent company of German European Union good distribution
practice medical cannabis distributor, Farmako GmbH
(“Farmako”).
Farmako is a leading European medical cannabis distributor,
headquartered in Frankfurt, Germany, with affiliated companies in
the United Kingdom, Luxembourg and Denmark. Farmako is equipped
with the following German and European industry certifications and
distribution licences, affording the company unparalleled access to
Germany's exponentially growing medical cannabis marketplace:
- Medical wholesale distribution licence under German Medicines
Act (“AMG”);
- Permit for narcotic drug handling as per German
Betaubungsmittelgesetz (“BtMG”); and
- Certificate of EU-GDP.
Farmako's German distribution network extends over 19,800
pharmacies and comprises an aggregate patient population of over
100,000 unique individuals.
The German medical cannabis market remains dependent on imports
to fulfill its expanding domestic demand curve. In 2017, Germany
imported 1,200 kilograms of medicinal cannabis flower. German
medical cannabis imports more than tripled in 2018, achieving total
import quantities of approximately 4,400 kilograms; with more than
half of eligible imports originating from Canadian suppliers.
CBD products are legal within the German operating theatre but
must adhere to precise THC limits of less than 0.02%. CBD is
marketed and sold in German under the following formats and form
factors:
- CBD oil;
- CBD nicotine-free E-liquids;
- CBD capsules;
- CBD crystals;
- CBD-fused cosmetics; and
- Functional foods / CBD-infused edibles.
AgraFlora will pursue the processing of EU-GMP-compliant
cannabis products from its flagship 2.2-million square foot Delta
Greenhouse Facility for integration into Farmako's European
distribution channels. EU-GMP certified cannabis products are
eligible for import/export and sale in the European Union. European
Good manufacturing practice (EU-GMP) certification is an
internationally recognized system, mandated with ensuring all
produced goods meet the highest consumer health and safety
standard.
Planned German distribution of cannabis products produced at its
Delta facility, at a forecasted unit contribution of 80 cents per
gram, affords AgraFlora the opportunity to achieve unparalleled
retail margins due to its seed-to-sale vertical integration.
The Company encourages current and prospective shareholders
alike to download the Farmako corporate presentation by following
the below stated URL:
https://agraflora.com/download/28904/
____________________
1 Published by the data and intelligence firm Prohibition
Partners, the Germany Cannabis Report
About AgraFlora Organics International Inc.
AgraFlora Organics International Inc. is a growth oriented and
diversified company focused on the international cannabis industry.
It owns an indoor cultivation operation in London, ON and is a
joint venture partner in Propagation Services Canada Inc. and its
large-scale 2,200,000 sq. ft. greenhouse complex in Delta, BC. The
Company is also retrofitting a 51,500-square-foot good
manufacturing practice (“GMP”) edibles manufacturing facility in
Winnipeg, Manitoba. AgraFlora has a successful record of creating
shareholder value and is actively pursuing other opportunities
within the cannabis industry. For more information please visit:
www.agraflora.com.
ON BEHALF OF THE BOARD OF DIRECTORS
Brandon Boddy Chairman & CEOT: (604) 398-3147
For additional
information:AgraFlora Organics International Inc.
Tim McNultyE: ir@agraflora.com T: (800) 783-6056 |
For French inquiries: Remy
Scalabrini, Maricom Inc.E: rs@maricom.ca T: (888)
585-MARI |
The CSE and Information Service Provider have
not reviewed and does not accept responsibility for the accuracy or
adequacy of this release.
Forward-looking Information Cautionary
Statement
Except for statements of historic fact, this
news release contains certain "forward-looking information" within
the meaning of applicable securities law. Forward-looking
information is frequently characterized by words such as "plan",
"expect", "project", "intend", "believe", "anticipate", "estimate"
and other similar words, or statements that certain events or
conditions "may" or "will" occur. Forward-looking statements are
based on the opinions and estimates at the date the statements are
made, and are subject to a variety of risks and uncertainties and
other factors that could cause actual events or results to differ
materially from those anticipated in the forward-looking statements
including, but not limited to delays or uncertainties with
regulatory approvals, including that of the CSE. There are
uncertainties inherent in forward-looking information, including
factors beyond the Company’s control. There are no assurances that
the business plans for AgraFlora Organics described in this news
release will come into effect on the terms or time frame described
herein. The Company undertakes no obligation to update
forward-looking information if circumstances or management's
estimates or opinions should change except as required by law. The
reader is cautioned not to place undue reliance on forward-looking
statements. Additional information identifying risks and
uncertainties that could affect financial results is contained in
the Company’s filings with Canadian securities regulators, which
are available at www.sedar.com.
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