AgraFlora Organics International Inc (CSE:AGRA) (OTCPINK:AGFAF) announced Friday that its wholly-owned subsidiary Farmako GmbH has signed a new supply agreement with Zenanbis Global subsidiary ZenPharm Ltd.
The agreement sees ZenPharm supplying EU-GMP quality flower to Farmako to distribute to medical cannabis patients in Germany.
Farmako anticipates distributing 1,500 kilograms of cannabis flower in Germany over a three-year term, with both parties having the option to extend the supply relationship.
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As part of the agreement, Farmako will receive the products in Germany and distribute them nationally under its own brand to its network of German pharmacies and doctors. In addition, Farmako and ZenPharm have agreed to do more collaborative work on additional product formulations, including cannabis oils and other dosage forms.
ZenPharm’s products include high potency THC flower and balanced THC and CBD flower, which are both in high demand in Germany, according to the company. Zenabis is a licensed producer of recreational and medical marijuana in Canada.
In a statement, Farmako’s CEO Katrin Eckmans told shareholders that the company was impressed with the Canadian firm’s ability to maintain highly professional production standards on a massive scale.
“Zenabis’ professional approach to growing cannabis, combined with Natrix Sciences’ experience with innovative and complex pharmaceutical products in Malta is a perfect interplay to provide a broad portfolio of high quality medical cannabis products for patients in Germany and across Europe,” Eckmans said.
AgraFlora CEO Brandon Boddy called the deal a “great fit” for Farmako.
"Zenabis and ZenPharm have presented themselves as professional and reliable partners to Farmako throughout the last year of our common work, with dedication to detail and also looking for a long-term, sustainable cooperation,” Boddy told investors.
Angèle Azzopardi, ZenPharm’s CEO said the company is “looking forward” to developing its relationship with Farmako, especially as more conventional dosage forms of medicinal cannabis are introduced to market.
Germany’s medical cannabis market has a value of over EUR 170 million and saw more than 140,000 cannabis prescriptions issued in 2019.
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