AgraFlora Takes Steps to Obtain Additional EU-GMP Quality Cannabis for German Distribution

VANCOUVER, British Columbia, June 05, 2020 (GLOBE NEWSWIRE) -- AgraFlora Organics International Inc.  (“AgraFlora” or the “Company”) (CSE: AGRA) (Frankfurt: PU31) (OTCPK: AGFAF) is pleased to announce that on June 3, 2020, its wholly owned subsidiary Farmako GmbH (“Farmako”) has entered into a binding supply term sheet (the “Term Sheet”) with ZenPharm Ltd (“ZenPharm”),  a subsidiary of Zenabis Global Inc. (“Zenabis”) The Term Sheet serves as the basis to enter into a supply agreement which is expected to be completed in the coming weeks.

Under the conditions of the Term Sheet, ZenPharm will supply EU-GMP quality medical cannabis flower cultivated by Zenabis to Farmako for distribution to medical cannabis patients in Germany.  The agreement is intended to facilitate the distribution of 1,500 kilograms of cannabis flower by Farmako in Germany over a 3 year term, with options for the parties to extend the supply relationship.  Farmako will receive the products in Germany and distribute them nationally under its own brand to its roster of German pharmacies and doctors.  The products provided by ZenPharm, initially including 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 Q4 2020. The parties have further agreed to work collaboratively on additional product formulations to be added to the contemplated agreement in 2021, including cannabis oils and other novel dosage forms.  

Farmako CEO Katrin Eckmans stated: “Having visited Zenabis’ Canadian facility at the end of 2019, I was very impressed.  We have visited many facilities, and Zenabis’ ability to maintain the highest standards of professionalism and quality throughout the organization even while operating on a massive scale is commendable.  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.”