DE: LGP Denmark signs sales agreement with German grower

Little Green Pharma Denmark ApS (LGP Denmark) is executing a three-year sales agreement for the supply of white-label cannabis flower products to Deutsche Medizinalcannabis GmbH (Demecan), one of Germany’s largest cannabis distributors.

Under the Agreement, LGP will provide Demecan with three high-THC strains (>22% THC) for distribution in Germany. To maintain strain exclusivity and following a ramp-up period of between 6 and 12 months, Demecan is required to purchase at least 450kgs per annum of each strain. This represents approximately A$9 million (€6million1) in total revenue per annum for the three strains.

Fleta Solomon, CEO of LGP 

Chief Executive Officer of Little Green Pharma, Fleta Solomon, said: “Demecan is a longstanding supporter and distributor of LGP’s medicinal cannabis products. The agreement gives LGP access to some of the best-in-class distribution services in Germany and potentially across Europe as the parties look to roll out these strains across the EU. The agreement is perfectly aligned with our longstanding strategy to gain market share in Europe, and also marks a significant turning point for the LGP Denmark facility, being the first in what we hope is a suite of high-volume purchase agreements underpinning the Facility’s arc towards profitability and full production.”