The announcement that Wayland Group (CSE:WAYL) has received key certifications from the German state of Saxony for its Ebersbach cultivation facility is welcome news for ICC International Cannabis Corp (CSE:WRLD.U) (OTCMKTS:KNHBF), which is set to take a large stake in the company.
The country's good manufacturing practice and good distribution practice certifications apply to a 50,000 square foot area of Wayland’s Ebersbach cultivation facility, which is located just outside of Dresden, Germany.
The new certifications will allow for the streamlining of production processes for the cannabis company and also permit the bulk warehousing of medical cannabis on German soil, allowing for direct sale into the German market, according to ICC.
READ: ICC International Cannabis to acquire 49.9% of Wayland assets
The market for medical cannabis in Germany is burgeoning, with more than 79,000 German patients now taking the drug, according to ICC.
Just last month, ICC International Cannabis struck a letter of intent to acquire 49.9% of Wayland’s international assets and license portfolio. A definitive agreement sealing the move is expected on or before March 1.
After the deal closes, ICC will have considerable input about the direction of Wayland's German operations.
“International Cannabis applauds the Ebersbach facility’s receipt of the prestigious good manufacturing practice and good distribution practice certifications,” said Eugene Beukman, CEO of International Cannabis, in a statement.
“EU-GMP certifications mark the highest standards of pharmaceutical production in the world. Receipt of EU-GMP certifications by the Ebersbach facility will streamline production processes, resulting in shorter lead times and higher margins,” he added.
READ: ICC International Cannabis and Wayland Group to begin CBD extraction
The Ebersbach facility is equipped with 820,000 square feet of clean-room cultivation space. Production of CBD isolate from the Ebersbach facility amounted to 2,400 kg in 2018.
The company expects Ebersbach will eventually apply for a German indoor medical THC cultivation license and will control an outdoor CBD cultivation operation as well.
Wayland shares slipped 4.7% to C$1.22 in afternoon trade on Friday while ICC International Cannabis shares held steady at C$0.345.
Contact Ellen Kelleher at ellen@proactiveinvestors.com
