Canify AG and Africa's first EU-GMP certified producer of medical cannabis flowers and extracts, MG Health Limited, have announced a planned merger. In a signed Memorandum of Understanding (MoU), both companies have agreed to expand their successful two-year collaboration into a combined holding structure. The group will be a fully vertically integrated medical cannabis platform spanning EU GMP-certified production, pharmaceutical processing, and multi-market distribution, with commercial presence in more than 7 countries including Germany, the United Kingdom, Australia, and Poland, as well a unique global supplier network.
The two companies have worked closely together since Q4 2024, when MG Health began supplying Canify with medical cannabis flower on a consistent basis. That proven supply relationship now forms the operational foundation for a full merger. "Mutual trust has grown out of our good working relationship – and so it is only logical to take our cooperation to the next level," says Sascha Mielcarek, CEO of Canify AG. "We share not only quality standards, but also a common attitude: patients are at the center of everything we do. Our shared vision is to create a globally active pharmaceutical company with a clear focus on the highest quality standards and clinical innovation."
The planned merger will create a vertically integrated structure that is unique in the European medical cannabis market. The combined group will control every critical step in the pharmaceutical value chain: from EU GMP-certified flower cultivation and extraction at MG Health's facility in Lesotho, through pharmaceutical processing regulatory management, and multi-channel distribution via Canify's established network of pharmacy partnerships and its direct-to-patient Canify Clinics platform.
MG Health's production platform provides the combined group with a significant structural cost advantage. Operating at 2,000 metres altitude in the Maluti Mountains of Lesotho, the facility benefits from optimal growing conditions, low energy costs, and year-round natural light, enabling pharmaceutical-grade production at a fraction of the cost of European indoor facilities. Beyond operational efficiency, MG Health has invested meaningfully in the local community, creating hundreds of sustainable jobs, expanding local infrastructure, and delivering education and development programmes for employees, their families, and surrounding communities.
"As a company that puts people first, we don't see economic success as an end in itself, but as a means to enable positive and sustainable change within our society," says Andre Bothma, CEO of MG Health. "This principle shapes our daily actions in Lesotho – from responsible, sustainable management and long-term employment prospects to targeted education initiatives. In Canify, we have found a partner who shares these values and will carry them forward with us."
"The merger gives us the opportunity to align our processes across the entire value chain with expertise and regulatory frameworks—and thus complement each other perfectly," explains Mielcarek. For example, Canify's existing international supplier network can be optimally aligned with MG Health's expanded production and processing capacities. "At the same time, with MG Health, we are strengthening an approach that combines pharmaceutical excellence, social responsibility, and environmental sustainability."
For more information:
Canify AG
https://canify.com/
MG Health Limited
mghealth.com/
