Little Green Pharma Enters Into Agreement to Supply Medicinal Cannabis Products to DEMECAN - Seite 2

The Agreement secures pricing that is a premium to LGP’s medicinal cannabis oil products sold in Australia.

Commenting on the Agreement, LGP Managing Director Fleta Solomon, said: “We are thrilled to enter into a partnership with DEMECAN. As the only company in Germany to cover the entire production chain for medicinal cannabis, DEMECAN is a leading supplier of medicinal cannabis in Germany.

“Germany is home to the largest population in the European Union and a rapidly growing medicinal cannabis industry.

“However, patient access to medicinal cannabis in Germany has been limited to date, with inadequate domestic production that is unlikely to produce sufficient product to satisfy the German market in the near term.

“The Agreement with DEMECAN allows LGP to expand its sales and distribution footprint in Germany to meet the growing demand for medicinal cannabis.”

DEMECAN Executive Director, Dr. Cornelius Maurer commented:

“In this fast-growing industry, it is crucial to have established and reliable partners like LGP, who share our focus on patient well-being and positioning as a high-quality pharmaceutical producer and wholesaler.”

Material terms of the Agreement

The Agreement sets out product specifications, quality requirements, and agreed unit pricing of medicinal cannabis oil and dried flower product that LGP will sell and export to DEMECAN.

The Agreement is subject to certain conditions precedent in respect of each of the medicinal cannabis oil and dried flower product categories, including LGP obtaining all required approvals to export its products including any German-specific approval requirements; the parties entering into a GMP Quality Agreement; and DEMECAN obtaining all approvals required to import such products into Germany.

Under the Agreement:

• There is no minimum order quantity and LGP has no obligation to supply any product until DEMECAN places a purchase order that is confirmed by LGP; and
• If DEMECAN fails to order, or LGP does not accept orders comprising, at least 50% of the Quarterly Quota (being 25% of the Annual Quota) for two consecutive quarters, then the other party has the right to terminate the Agreement without liability to either party.

German medicinal cannabis market overview