ELIXXER, LTD. (TSX-V: ELXR. OTCQB: ELIXF) (“ELXR” or
the “Company”) is pleased to announce that Little Green
Pharma (ASX: LGP) has signed a binding three-year purchase
agreement (“
Agreement”) for the sale, export, and
distribution of LGP Classic medicinal cannabis oils and
LGP-cultivated dried cannabis flower to Berlin-based Deutsche
Medizinalcannabis GmbH (“
DEMECAN”).
DEMECAN is the only German company that covers
the entire medicinal cannabis production chain; from cultivation to
processing and manufacturing, through to distribution to
pharmacies. DEMECAN is currently the only producer of medicinal
cannabis in Germany and is a strategically important partner for
LGP.
The Agreement does not require DEMECAN to
purchase a minimum volume. Subject to the conditions precedent and
material terms of the Agreement, as set out below, LGP will sell
and export to DEMECAN up to 1,000kg of LGP-cultivated dried
cannabis flower or 48,000 units of LGP Classic medicinal cannabis
oil product, or any combination thereof, per annum (the
“Annual Quota”). The Agreement has a three-year
term, which will commence on the first commercial shipment of LGP
medicinal cannabis products to Germany, which is expected to take
place in the second half of 2020.
The Agreement secures pricing that is a premium
to LGP’s medicinal cannabis oil products sold in Australia.
Commenting on the Agreement, LGP Managing
Director Fleta Solomon, said: “We are thrilled to enter into a
partnership with DEMECAN. As the only company in Germany to cover
the entire production chain for medicinal cannabis, DEMECAN is a
leading supplier of medicinal cannabis in Germany.
“Germany is home to the largest population in
the European Union and a rapidly growing medicinal cannabis
industry.
“However, patient access to medicinal cannabis
in Germany has been limited to date, with inadequate domestic
production that is unlikely to produce sufficient product to
satisfy the German market in the near term.
“The Agreement with DEMECAN allows LGP to expand
its sales and distribution footprint in Germany to meet the growing
demand for medicinal cannabis.”
DEMECAN Executive Director, Dr. Cornelius Maurer
commented:
“In this fast-growing industry, it is crucial to
have established and reliable partners like LGP, who share our
focus on patient well-being and positioning as a high-quality
pharmaceutical producer and wholesaler.”
Material terms of the
Agreement
The Agreement sets out product specifications,
quality requirements, and agreed unit pricing of medicinal cannabis
oil and dried flower product that LGP will sell and export to
DEMECAN.
The Agreement is subject to certain conditions
precedent in respect of each of the medicinal cannabis oil and
dried flower product categories, including LGP obtaining all
required approvals to export its products including any
German-specific approval requirements; the parties entering into a
GMP Quality Agreement; and DEMECAN obtaining all approvals required
to import such products into Germany.
Under the Agreement:
- There is no minimum order quantity and LGP has no obligation to
supply any product until DEMECAN places a purchase order that is
confirmed by LGP; and
- If DEMECAN fails to order, or LGP does not accept orders
comprising, at least 50% of the Quarterly Quota (being 25% of the
Annual Quota) for two consecutive quarters, then the other party
has the right to terminate the Agreement without liability to
either party.
German medicinal cannabis market
overview
Germany represents a significant opportunity for
LGP as the largest medicinal cannabis market in Europe, estimated
to be worth €7.7 billion (A$12.5 billion) by 2028 . The number of
prescriptions for medicinal cannabis in Germany is growing rapidly;
there were 95,000 prescriptions at the end of 2018 and more than
240,000 prescriptions were expected by the end of 2019.
It is expected Germany will remain a favourable
market for the import of medicinal cannabis oil products due to
insufficient domestic supply as a result of significant delays in
its domestic cultivation tendering process, with the first licences
only awarded in 2019 .
About DEMECAN
DEMECAN is the only German company that covers
the entire production chain for medicinal cannabis; from
cultivation to processing and manufacturing, through to
distribution to pharmacies. DEMECAN was founded in 2017 to
guarantee German patients access to high quality medicinal
cannabis. In May 2019, the Germany Federal Institute for Drugs and
Medical Devices (“BfArM”) awarded DEMECAN the
first licence to grow medicinal cannabis. From 2020, DEMECAN will
supply the Federal Republic of Germany with medicinal cannabis.
DEMECAN is based in Berlin and operates a facility near Dresden for
the cultivation and processing of medicinal cannabis. DEMECAN also
imports medicinal cannabis into Germany as a pharmaceutical
wholesaler.
About Elixxer Ltd.
(www.Elixxer.com)
ELXR Ltd. is a Canadian public company listed on
the TSX Venture Exchange (TSXV: ELXR) and the US OTC-QB exchange
(OTCQB: ELIXF).
Through its partners ELXR presently has
significant interests in Australia, Jamaica, Switzerland, Italy and
Canada.
For further information please
contact:
President, John McMullen, +1-416-803-0698,
john@elixxer.com
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