Apollon Formularies has signed a Joint Venture Agreement with Tri-Medi Canna Pty, a South African based medical cannabis company, to establish a jointly-owned incorporated South African company, Apollon SA Pty Ltd.
The Joint Venture represents Apollon's first international expansion, with the potential to reach over 350 million people in the Southern African Development Community. Apollon will receive a gross royalty on sales for all Apollon products sold within South Africa before extending its commercial reach to the wider SADC region under a renewable, mutually exclusive license agreement, the initial term of which is 12 months. To strengthen commercial ties between the parties, Tri-Medi Canna will become a shareholder in Apollon via share subscription totaling £300,000 over two tranches, the first of which will be for £150,000 at 2.5p per share. The Joint Venture will give Apollon an additional avenue to monetize its proprietary medical and technical experience. Tri-Medi Canna is in the process of gaining a large volume (256 hectares) cultivation license from the South African Health Products Regulatory Authority and has engaged with both national and local arms of government in South Africa.
Apollon will own 49% of the JV Company with Tri-Medi Canna owning the remaining 51%. All future operating licenses along with any future intellectual property developed under the JV Company will be jointly owned. Africa's medical cannabis sector is forecast to be worth up to $7.1 billion by 2023 with South Africa potentially making up 70% of the current market. The Joint Venture will open additional opportunities for Apollon to undertake clinical trials on its proprietary medicinal cannabis formulations for treating cancer.
Stene Jacobs, COO of Apollon Formularies for Europe and Africa, commented, "This is a major step forward in Apollon's plans to reach global markets and the African market which still remains largely untapped. This Joint Venture Agreement validates Apollon's business model in Jamaica and our ability to replicate and scale up operations to other international jurisdictions."
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