Canada-based globally integrated medicinal cannabis company with operations in Colombia, Medcolcanna, has signed two EU sales agreements for EU-GMP and CUMS-IMC certified dried flower.
Medcolcanna has signed agreements with German-based Greenstein, as well as Berlin-based Cantourage.
The sales agreement with German-based Greenstein has a three-year term, with the possibility of extension, and establishes a minimum purchase of 1200 kg during the first year, 2000 kg during the second year and 2,500 kgs during the third year.
Its sales agreement with Cantourage for Germany and the UK has a five-year term, with the possibility of extension. The initial forecast presented by Cantourage establishes approximately 800 – 1000 Kgs for the first year.
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Cantourage will distribute the flower through its proprietary clinics and distribution in the UK and through its network of pharmacies in Germany. Medcolcanna has developed a new brand for distribution with Cantourage in UK and Germany, followed by Poland within the next few months.
Six Medcolcanna proprietary strains have been already registered with the German Narcotics agency, and the production will be based on supply from the Medcolcanna farm located near Bogota. Additionally, THC quotas have been granted by the Colombian Government and are in place with the first exports expected by October to November 2022.
CEO Felipe de la Vega commented: “It has being a long and difficult journey since we created the company. A market that we were trying to understand and anticipate but that was being created. Therefore, making decisions was more complex.
“CBD market for extracts and isolates became very competitive with the US hemp farm bill affecting projections. The market for THC extracts is highly regulated, requires multiple certifications and a lot of investment, and still is a very small market compared with flower.
“Now the approval of flower export has allowed us to really gain traction in Colombia supply, as a high quality, low-cost producer, and the result of it is the multiple contracts we have now in place and we continue to negotiate. Starting November 2022, we expect recurrent revenue with high margins and good profitability.
“This combined with internal decisions that have helped us to reduce our G&A and cash burn makes our company a sustainable and profitable target for investors and we are pretty confident that before the end of the year we will be in a completely different situation.
“We continue supplying internally medical formulations currently approximately 300 per month and growing at 15 per cent per month. Now we are really getting to an interesting point for the company, with a very clear path forward and the possibility to generate profits for our investors.”
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