Victorian-headquartered cannabis stock Cann Group (ASX:CAN) has bought its way into Germany’s medicinal cannabis market.
In return for a minor investment in German importer and distributor iuvo Therapeutics, iuvo has placed an initial order for 19,000 units of Cann’s 30ml cannabis extract.
Cann has paid CAD1 million into a CAD5 million capital raise by iuvo, which will give Cann around 2% of iuvo’s issued ordinary shares.
iuvo will use the funds to expand sales and marketing activities, and build a new manufacturing and formulation facility in Malta.
In return for the investment, Cann gets exclusive external rights. to supply iuvo subsidiary, iuvo Germany, with medicinal cannabis extracts up until December 31.
The initial 19,000 unit order will be shipped to Germany within the next month, subject to clearance approvals.
iuvo has access to more than 20,000 pharmacies across Germany. German sales in 2019 exceeded those of all other European markets combined, so it’s no surprise shareholders were on-board with the strategic move today, sending CAN up more than 5 per cent today to 63 cents. View current stock value here:
Emyria uses data gathered by its clinical subsidiary Emerald Clinics to identify treatment needs and notes to date only one cannabinoid-based medicine has TGA approval – GW Pharma’s Epidolex.
EMD-003 was developed to target treatment of psychological distress and symptoms of anxiety, depression and stress.
Following the TGA’s decision in December to allow low-dose (<150mg) CBD to be registered as Schedule 3 medications, Emyria’s data indicated it was worth the company filing unique IP covering the use of specific doses of CBD at or below 150mg level.