Organigram buys 25% of German Cannabis Firm
Moncton, New Brunswick-based cannabis producer Organigram (TSX VENTURE: OGI) (OTC: OGRMF), recently agreed to buy 25% of Alpha-Cannabis® Pharma GmbH (ACG) for 8,333 common shares, or €1,625,000. The closing is subject approval under German law.Upon ACG achieving certain milestones, Organigram will pay ACG an additional €875,000 in common shares.
The deal comprises two supply agreements: 1) for the supply of cannabidiol isolate from ACG to Organigram, and 2) for the supply of dried cannabis flower from Organigram to ACG. In addition, ACG and Organigram may jointly bid on licenses to supply medical cannabis to the German market.
ACG has been preparing products for the swiftly growing German and European Markets following their recent product launch of Cannabidiol alpha DAC, according to ACG’s Managing Directors Alexander Klomsdorff and Dr. Volker Christoffel. “This relationship is a perfect example of two companies coming together towards a common goal,” stated Greg Engel, CEO at Organigram.
Alpha-Cannabis Germany, established in 2016, intends to fully serve the German medical cannabis market, which is quickly growing to be a large market. The German market is also a gateway to other European markets.
ACG is focused on developing and marketing cannabis-based pharmaceuticals and APIs (active pharmaceutical ingredients). Its activities cover the full spectrum of cannabinoids. ACG recently launched a CBD kit in over 20,000 pharmacies in Germany, Austria and Switzerland.
Organigram produces premium, indoor-grown cannabis for patients and adult recreational consumers in Canada, and is developing international business partnerships to extend its global footprint. It has a portfolio of five brands including The Edison Cannabis Company, Ankr Organics, Trailblazer and Trailer Park Buds.
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Source Organigram press release
Organigram buys 25% of German Cannabis Firm
