Cann Group has committed to a minority investment in German cannabis firm iuvo Therapeutics and received an initial order to ship 19,000 units of 30ml extract.
Iuvo, a GMP-certified importer and distributor of medicinal cannabis products throughout Europe, has access to more than 20,000 pharmacies in Germany, Europe’s largest medicinal cannabis market.
Cann Group has made a strategic CAD 1 million cornerstone commitment in a CAD 5 million capital raising currently being completed by iuvo, resulting in Cann Group holding approximately 2% of iuvo’s issued ordinary shares.
Funds raised will be used by iuvo to expand sales and marketing capabilities and assist with construction of a new manufacturing and formulation facility in Malta.
After the investment, Cann will be given exclusive external rights to supply iuvo Therapeutics GmbH (a wholly owned subsidiary of iuvo Germany) with medicinal cannabis extracts until December 31 2021 when the rights will convert to preferred non-exclusive status.
The initial 19,000 unit order for Cann product is expected to be shipped to Germany within the next month, subject to relevant regulatory clearances, and will be one of the first full-spectrum extracts available in the market.
Cann Group CEO Peter Crock said the exclusive supply arrangements significantly increase the value and importance of the three-year supply agreement with iuvo Germany, which was signed in May 2020.
“We believe this initial order represents the largest shipment of product produced in Australia for export markets and is a tangible sign of iuvo’s commitment to servicing its growing customer base with safe, quality GMP-standard medicinal cannabis,” he added.