Erfurt, Germany-based AMP Alternative Medical Products GmbH, a subsidiary of Chinook Tyee Industry Limited (TSXV: XCX), is partnering with Pure Life Cannabis Corp., a late-stage Health Canada applicant to become a licensed producer of cannabis based in Edmonton, Alberta, to import cannabis to Germany.
AMP has signed a non-binding memorandum of understanding production supply agreement with Pure Life. The Canadian company is building a 27,280 square foot facility where it will produce approximately 2,000 kilograms of EU-GMP cannabis flower annually and 8,000 kilograms of cannabis flower product for the Canadian marketplace.
The MOU covers the purchase of up to 1,200 kilograms of cannabis flower annually in the first year of production. Pursuant to the MOU, PLCC is conducting an EU-GMP gap analysis with AMP’s German pharmaceutical consultants.
The PLCC facility will be completed in three phases. After completion of the first phase, AMP’s German pharmaceutical consultants will conduct an audit of the facility. If EU-GMP standards are met, AMP and PLCC plan to enter into a definitive supply agreement outlining pricing and monthly supply volumes.
AMP intends to arrange for final EU-GMP certification by German State Officials and apply for the required import licenses for medical cannabis to Germany.
German doctors can prescribe medical cannabis to patients suffering from serious illnesses. Germany is expected to pass the one million patient milestone by 2024, according to analytics firm Prohibition Partners.
According to Prohibition Partners at the 2019 Davos World Economic Forum, Europe’s three largest medical cannabis markets, Germany, the Netherlands and Italy, could double in size in 2019.