Canonic Ltd. has signed a non-exclusive licensing agreement with Portugal-based cannabis cultivation and manufacturing company GroVida Lda. Under the agreement, GroVida will cultivate, market, and sell products based on Canonic's cannabis varieties in Europe and the United Kingdom and will pay Canonic royalties on its sales based on these products.
This is Canonic's initial licensing agreement for the European market, a key target market for Canonic, with total medical cannabis market sales estimated at approximately €400 million for 2021, while still at an early stage in its development.
GroVida is a vertically integrated medical cannabis company located in Portugal and currently selling medical cannabis products in the EU. GroVida owns 20,000 square meters of high-tech greenhouses, which have been operational since November 2020, and has collaborated with Canonic since January 2022 to cultivate Canonic's cannabis varieties. This has been done on a semi-commercial scale at its cultivation facilities in Portugal to meet regulatory standards under European growing conditions.
Canonic's proprietary cannabis varieties development was supported by Evogene's GeneRator AI engine.
Euan Keenan, Chief Executive Officer of GroVida, commented, "As a company operating for several years in the EU cannabis market, we have been impressed with the quality of the cannabis varieties developed by Canonic and especially with their performance under our growing conditions in Portugal. We see significant sales potential for these varieties throughout our home market in Europe, and we are pleased with this new licensing agreement. We look forward to initiating and growing sales of products based on these varieties."
Arnon Heyman, Chief Executive Officer of Canonic, commented, "We are very pleased with this first licensing agreement, a significant pillar in our European go-to-market sales strategy. GroVida has been our partner for the cultivation and testing of our cannabis varieties in the EU since early 2022. Their interest in broadening our relationship to a new stage is a testament to the quality of Canonic's varieties and to GroVida's belief in their commercial success in the European market. Canonic also plans to launch direct sales into the European market starting with Germany."
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