DanCann Pharma A/S has signed a supply agreement with WEECO Pharma GmbH for the German market during the period 2023 to 2025.
DanCann Pharma will sell and export flower products to WEECO Pharma with its main focus on the Tetrahydrocannabinol ("THC") genetics and candidates. WEECO Pharma will purchase, import, package, market, and distribute the products to the European medicinal cannabis marketplace. The agreement is non-exclusive for the Products and is a term for 3-year (36 months), with a binding commitment of approx. DKK 40 million for the period. The starting point for the period, which is 2023, starts lower, after which the volume increases over 2024 and 2025.
Within the Agreement, DanCann Pharma is subject to and guarantees that the products are manufactured under Danish legislation, with guidelines set by the Danish Medicine Agency, and hereby according to the Danish Ministry of Health requirements, including applicable rules for Good Agricultural and Collecting Practices ("GACP"), and European Union Good Manufacturing Practice ("EU-GMP") standards.
The two companies expect the first shipment to commence in May 2023, after DanCann Pharma has obtained all necessary approvals and documentation in the matter of the stability of the products.
Jeppe Krog Rasmussen, CEO of DanCann Pharma, comments: "It has been a pleasure to do business with the WEECO Pharma team, who are the epitome of professionalism, where there is no doubt that they know what they are doing. WEECO Pharma is very skilled and has a professional team with a positive and way-forward approach. A long-term partnership is based on trust and common values, and DanCann Pharma is more than satisfied with this signed agreement and looks forward to the coming years and cooperation."
"This is one of our first major binding deals, but far from the last. We are very pleased with this, and it is something that we have been working on for a long time and which shows that the Company is now facing the "commercial phase change" in relation to its major investment in our facility, Biotech Pharm1, and the sale and distribution of ingredients for customers and patients around Europe. Success in Germany, the largest market for medical cannabis in Europe and globally, is the path to success in Europe. Showing the DanCann Pharma flag through WEECO Pharma's strong distribution network and medicinal cannabis sales team will ensure that we become a significant supplier to the German market."
Rene Zix, Head of sales at WEECO Pharma, comments: "We are all very pleased to be starting our partnership with DanCann Pharma and adding them to our group of selected producers and genetics collaborators. They are a professional, highly knowledgeable team who share the same vision as us. Our customers will benefit from DanCann Pharma's excellent quality medical cannabis. We are looking forward to working and growing together and offering our patients a better quality of life."
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