hdhick
4 years ago
AgraFlora’s Subsidiary Farmako Obtains Additional EU-GMP Cannabis for Distribution in Germany
September 17 2020 - 08:00AM
GlobeNewswire Inc.
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AgraFlora Organics International Inc. (“AgraFlora” or the “Company”) (CSE: AGRA) (Frankfurt: PU31) (OTCPK: AGFAF) is pleased to announce that on September 9, 2020, its wholly owned subsidiary Farmako GmbH (“Farmako”) has entered into a binding distribution agreement (the “Distribution Agreement”) with Adjupharm GmbH (“Adjupharm”), the German subsidiary of IM Cannabis Corp. (“IMC”) (CSE:IMCC).
Under the Distribution Agreement, Adjupharm will supply EU-GMP medical cannabis flower to Farmako for distribution to medical cannabis patients in Germany over a 3 year term. Farmako will distribute the products in Germany under the IMC brand to its established network of German pharmacies. The Distribution Agreement is expected to launch with first products in October 2020.
The products provided by Adjupharm and distributed by Farmako include initially high potency THC flower. The portfolio is expected to be enhanced throughout Q1 2021 by balanced THC and CBD flower as well as CBD dominant flower.
Farmako CEO Katrin Eckmans stated: “We believe that Adjupharm’s IMC branded cannabis is a great fit for our product portfolio. Our goal is to provide a comprehensive and sustainable portfolio of high quality medical cannabis products, including both flower and ‘2.0’ ingestible products to patients in Germany. We believe Farmako’s established pharmacy network combined with IMC’s quality and manufacturing excellence will be a disruptive force in Germany’s rapidly evolving medical cannabis market.”
In addition to the IMC branded cannabis produced and procured by this Distribution Agreement, Farmako intends to launch additional in-house and third party branded medical cannabis products over the balance of 2020.
About AgraFlora Organics International Inc.
AgraFlora Organics International Inc. is a leading cannabis company building shareholder value through the development of revenue generating operating assets in the global cannabis industry. AgraFlora is focused primarily on the Canadian cannabis industry; the world’s most advanced and regulated legal cannabis market. Flagship Canadian assets include: Edibles & Infusions, a fully automated manufacturing facility in Winnipeg, MB for white-label and consumer branded edible production; Propagation Services Canada, a large-scale commercial greenhouse in Delta, BC focused on reshaping the Canadian flower market with high-potency, low cost cannabis flower, and AAA Heidelberg, a craft focused cannabis producer in London, ON. In addition, AgraFlora’s wholly owned subsidiary Farmako GmbH is scaling towards its goal of being Europe’s leading distributor of medical cannabis. Farmako currently has active distribution operations in Germany and expects to commence active operations in the United Kingdom in 2020. For more information please visit: https://agraflora.com/.
About Farmako GmbH
Farmako GmbH is a pharmaceutical wholesaler based in Frankfurt, Germany. The company focuses on the distribution of medical cannabis to pharmacies with the aim of securing the supply for cannabis patients and closing the gap between supply and demand for medical cannabis. Farmako is planning to expand its business model into other European countries with a corresponding legal basis, scaling towards its goal of being Europe’s leading distributor of medicinal cannabis. The company already distributes medical cannabis to pharmacies in Germany since March 2019 and is fully licenses in the UK to start distribution operations there in 2020. Farmako is a 100% subsidiary of AgraFlora Organics International Inc. For more information please visit: https://www.farmako-global.com/.
About IM Cannabis Corp.
IMC (CSE: IMCC) is a multi-country operator (MCO) in the medical cannabis sector headquartered in Israel and with operations across Europe. Over the past decade, IMC has built its brand as a provider of premium medical cannabis products in the Israeli market. The Company has also expanded its business to offer intellectual property related services to the medical cannabis industry based on proprietary processes and technologies it developed for the production of medical cannabis.
In Europe, IMC operate through a German-based subsidiary and EU-GMP certified medical cannabis distributor – Adjupharm GmbH. IMC’s European presence is also augmented by strategic alliances with various pan-European EU-GMP cultivators and distributors with the objective of capitalizing on the increased demand for medical cannabis products and bringing the IMC brand and its product portfolio to European patients.
ON BEHALF OF THE BOARD OF DIRECTORS
Nicholas Konkin
E: ir@agraflora.com
T: (800) 783-6056
For French inquiries:
Maricom Inc.
Remy Scalabrini
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.
hdhick
4 years ago
From everyone's good friend, Ted Ohashi:
IM Cannabis Corp. (CSE: IMCC) announced a record harvest by Focus Medical and provided an update on Israeli operations. All amounts are in Canadian dollars unless otherwise specified.
Focus Medical (FM) recently completed a semi-annual record harvest of over 3,000 kg of medical cannabis at its cultivation facility at Sde Avraham, Israel or an annualized production rate of 6,000 kg.
If you include production from its third-party supply agreements, FM estimates supply capacity of 8,000 kg in 2020 and 11,000 kg in 2021. This is medical cannabis to be sold under the IMC brand.
Focus Medical’s first two months of shipments of IMC-branded medical cannabis products to SuperPharm and Panaxia totalled over 250 kg
Approximately 450 kg of medical cannabis is expected for shipment in Q2 2020 under sales agreements with Super-pharm and Panaxia and 2,550 kg of medical cannabis is expected for shipment in the latter half of 2020 under previously announced pharmacy sales.
If we refer to the table above (sorry, was not able to cut and paste the table) that I have published previously, we can use the value per kg to get an approximate idea of the gross value IMCC is talking about. These do not represent sales forecasts. I am simply trying to indicate the value of the sales we are talking about.
I will use an average value per kg of $5,500.
The 3,000 kg record harvest represents an end value of approximately $16.5 million. The annualized rate is double that or $33.0 million.
The total supply capacity of 8,000 kg for 2020 represents $44.0 million and the 11,000 kg for 2021
represents $60.5 million.
The 250 kg for two months sales represents about $1.375 million
The 450 kg for Q2 is approximately $2.475 million
The 2,550 kg for the latter half of 2020 is worth around $14.0 million.
Total 2020 deliveries to Israeli pharmacies is expected to be approximately 3,000 kg with a value of
$16.5 kg at $5,500 per kg.
The total sales estimate from all binding sales agreements in Israel to date is 33,075 kg of medical cannabis with a value of $193.5 million between Q2 of 2020 and the end of 2023 or approximately $5,850 per kg.
Supply of medical cannabis to fulfill these pharmacy sales agreements is now fully contracted. Focus Medical has signed and announced supply agreements with Cannomed Medical Cannabis Industries Ltd. (TASE:CNMD), Intelicanna Ltd. (TASE:INTL), Way of Life and Cannation to supplement its own production and international supply from its EU-GMP certified partner in Spain.
Conclusion: although these are not forecasts, they represent an indication of what we can reasonably expect from a sales perspective. So for the balance of 2020 revenue from Israeli sales agreements should be in the order of $16.5 million. I don’t expect anything special from the first quarter report that was just delayed until around mid-June. But after that we should see a healthy acceleration in sales. We should not forget, management anticipates a 50% gross margin on Israeli sales and a 40% gross margin on the German contracts.
For the next three years from the existing Israeli contracts, sales are forecast at $193.5 million with a 50% gross margin. These numbers do not include any allowance for sales from the German agreements announced or any new sales/distribution agreements moving forward. I think we have every reason to expect a significant level of additional sales in that time period.
As the 5-day chart shows, IMCC’s share price advanced as the
week progressed. As I suggested, this is likely related at least in part to the fact that the $0.50 warrants were expiring and selling pressure declined as the week progressed.
From this point on, it should be wind at our backs until the stock gets to the $1.00 to $1.05 level. The $1.00 level is often one of those investor psychological resistance points but I have to warn that given the strong news flow we have seen, it might just blow through that mark. But we will like see some selling come in at around $1.05 which is the price of the last financing done while IMCC was private. There are always some investors who can’t resist the chance to break even.
If for some reason you’ve been holding off or moving in slowly, I think this is an excellent time to be adding to your IMCC holdings. There should be an easy 25% ahead (if there is such a thing!)
For the full article, please visit: https://4495825a-d729-4d8f-ade8-e78f828e1c8d.usrfiles.com/ugd/449582_1bf3971416204494ae5d38f55a9bb362.pdf
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