German pharmaceutical cannabis company Canify AG and African medical cannabis cultivator MG Health Limited have announced a planned merger, marking yet another M&A deal in a market widely expected to see an incoming wave of consolidation.
MG Health, reportedly Africa’s first EU-GMP certified medical cannabis producer, announced today (March 12, 2026) that it has signed a Memorandum of Understanding (MOU) with Canify to combine the two companies into a vertically integrated entity spanning cultivation, processing, and multi-market distribution.
The pair have worked together since signing a supply agreement in 2024, seeing MG Health begin shipping medical cannabis flower to the German market via Canify. According to the companies, this merger marks the next evolution of this proven working relationship.
“Mutual trust has grown out of our good working relationship – and so it is only logical to take our cooperation to the next level,” says Sascha Mielcarek, CEO of Canify AG. “We share not only quality standards, but also a common attitude: patients are at the centre of everything we do. Our shared vision is to create a globally active pharmaceutical company with a clear focus on the highest quality standards and clinical innovation.”
Under the combined structure, MG Health will provide EU-GMP certified flower cultivation and extraction from its facility 2,000 metres high in the Maluti Mountains of Lesotho.
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Canify, meanwhile, will contribute pharmaceutical processing, regulatory management, and distribution through its established pharmacy network, as well as its direct-to-patient Canify Clinics telemedicine platform.
The merged group will have commercial presence in more than seven countries, including Germany, the UK, Australia, and Poland, with planned expansion into Switzerland and further European markets in the near future.
Andre Bothma, CEO of MG Health, said: “As a company that puts people first, we don’t see economic success as an end in itself, but as a means to enable positive and sustainable change within our society.
Mielcarek continued: “The merger gives us the opportunity to align our processes across the entire value chain with expertise and regulatory frameworks—and thus complement each other perfectly. At the same time, with MG Health, we are strengthening an approach that combines pharmaceutical excellence, social responsibility, and environmental sustainability.”
Its Lesotho facility, the company states, boasts optimal growing conditions, low energy costs, and year-round natural light, enabling pharmaceutical-grade production at significantly lower cost than European indoor facilities.
MG Health says it has already created hundreds of jobs in Lesotho and invested heavily in local infrastructure and education programmes for employees and surrounding communities.
Completion remains subject to finalisation of definitive agreements and regulatory approvals, with both companies expressing confidence that the process will be completed in a timely manner.
