AgraFlora Organics International Inc (CSE:AGRA) (OCTMKTS:AGFAF) said on Tuesday that its subsidiary Farmako GmbH has executed a binding supply agreement with ZenPharm Limited, a subsidiary of Zenabis Global Inc (TSX:ZENA), to secure additional medical cannabis stock.
As result of the supply agreement, ZenPharm will supply EU Good Manufacturing Practice (GMP) quality medical cannabis flower cultivated by Zenabis to Farmako for distribution to medical cannabis patients in Germany. The agreement will facilitate the distribution of 1,500 kilograms of cannabis flower by Farmako in Germany over a three-year term, said the company.
Farmako will distribute the products to its established network of German pharmacies and the products will carry Farmako’s branding, a key step in building “brand awareness and loyalty” with physicians, pharmacists and patients, noted the company. The products initially include high potency THC flower and balanced THC and CBD flower, two product categories that management believes are in highest demand in Germany. Shipments to Farmako are expected to start in November 2020.
In a statement, Farmako CEO Katrin Eckmans said: “It is our intention to establish partnerships with reliable suppliers and ensure high quality and sustainable supply at a fair price range to German patients.”
She added: “ZenPharm and Zenabis have proven themselves as trustful and reliable supply partners. Our goal to provide sustainable product for German patients takes a big step forward with this transaction, and my team."
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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