Under the agreement, cannabis flower will be supplied to WEECO from Cannasouth’s world-class cannabis cultivation and processing facility based in Waikato, New Zealand.
Cannasouth, which was the first medicinal cannabis company to list on the New Zealand stock exchange, has stated that the total value of the agreement could be worth between NZ$12m (~£m )and NZ$15m over years two and three.
The parties have also agreed to work together to develop cannabis cultivars to best suit the needs of the European market.
Cannasouth CEO Mark Lucas says the company will benefit from the opportunity this agreement brings while it ramps up production and completes its Good Agricultural & Collection Practices (GACP) certification, which is expected soon.
Read more: Is there value in being a first mover in the European cannabis market?
Lucas commented: “Good Manufacturing Practice (GMP) certification is next to complete and is necessary for higher-value flower sales. Accessing the European market also requires suitable genetics.
“Our agreement with WEECO means Cannasouth can now confidently move forward with our growing programme and begin the next phase of our cultivar on-boarding and development.”
Cannasouth will retain sufficient flower to supply the local New Zealand market, which will enable its medicinal cannabis products to be verified.
Exporting medicinal cannabis flower has always been part of Cannasouth’s strategy for generating additional revenue streams, while it develops its own medicinal cannabis products for the New Zealand market.
Lucas continued: “Global demand, particularly in Europe, has created an early revenue opportunity in the export of premium cannabis flower. Our world-class, next-generation cannabis cultivation and processing facility was fully commissioned at the end of last year. This has enabled us to take advantage of the rapidly growing and lucrative pharmaceutical cannabis flower market.
“We have taken our time to select the best partner in Europe to represent Cannasouth and deliver our flower to one of the fastest-growing medicinal cannabis markets in the world.
“Despite global geopolitical and economic uncertainty, the medicinal cannabis industry continues to grow rapidly as patients worldwide seek alternatives to currently available treatments.
“We are thrilled to partner with WEECO and be a key part of their global network and growth plans. We have built a world class team and world-class cultivation facility here in New Zealand. These strong foundations are now enabling us to reap the rewards of our efforts and participate as a key player on the international stage.”
CEO of WEECO Pharma GmbH, which is one of the leading importers of medicinal cannabis in Germany, Boerge Diessel, added: “We are incredibly excited to be starting our partnership with Cannasouth. After a long vetting and qualification process, we are now able to add the top New Zealand supplier to our group of selected producers and genetics collaborators.
“Our customers will benefit from Cannasouth’s excellent quality produced in its state-of-the-art facility. We will develop products together that will enable clear advances to be made in the treatment of various illnesses and thus offer patients a better quality of life.”
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