AgraFlora Organics International Inc., an international cannabis company, announced that the company has acquired 100 per-cent of the issued and outstanding shares of The Good Company GmbH. The Good Company is the parent company of German EU-GDP medical cannabis distributor, Farmako GmbH.
Farmako is a 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 licenses, affording the Company unparalleled access to Germany’s geometrical growing medical cannabis marketplace:
- Medical wholesale distribution license under German Medicines Act (“AMG”);
- Permit for Narcotic Drug Handling as per German
- Betäubungsmittelgesetz (“BtMG”); and,
- Certificate of EU-Good Distribution Practice (“EU-GDP”).
Farmako has realized revenues of over C$2,326,000.00 throughout the 2019 fiscal year and has succeeded in capturing an eight per-cent (8%) market share of Germany’s burgeoning medical cannabis arena, boasting the highest capital efficiency and positive EBIT margins within the industry.
Farmako’s German distribution network extends over 19,800 pharmacies and comprises an aggregate patient population of over 100,000 unique individuals.
Germany's medical cannabis laws were introduced in March 2017 and the country is poised to become one of the largest federally regulated medical cannabis markets in the world. The German patient population for medical cannabis is experiencing exponential growth, with over 100,000 patients now active; an increase from approximately 800 in 2017. According to market data from Insight Health, each eligible German patient is prescribed on average approximately 30 grams of medical cannabis per month; when extrapolated this equates to annual cannabis demand of 36 tons.
Additionally, Farmako has been granted an authorization for the wholesale distribution of medicinal products, including medical cannabis, by the UK’s Medicines and Healthcare products Regulatory Agency (the “MRHA”). Recent UK legislation allows for the prescription of cannabis from a medical specialist via a regular pharmacy model. Access to this high profile market, when coupled with broad National Health Service insurance coverage for medical cannabis to ensure patient outcomes, is a key strategic element of AgraFlora’s global platform.
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