- Little Green Pharma (LGP) enters a three-year distribution agreement to market its LGP cannabis oils in Germany
- Under the exclusive agreement with AMP Medical Products, AMP will distribute and market LGP cannabis oil medicines in Germany
- In return, Little Green Pharma will supply AMP with cannabis oils on an exclusive basis
- The agreement is conditional upon AMP completing a supplier qualification into LGP, which the company anticipates will be complete by the second quarter of 2022
- Little Green Pharma is up 1.69 per cent to 60 cents
Little Green Pharma (LGP) has entered a three-year distribution agreement to market its LGP cannabis oils in Germany.
Under the exclusive agreement with AMP Medical Products, AMP will distribute and market LGP cannabis oil medicines, while agreeing not to promote any other oil products in Germany.
AMP currently holds one of the largest medical liaison teams in Germany and hosts a broad range of well-attended medicinal cannabis education sessions for physicians and allied health professionals.
In return, Little Green Pharma will supply AMP s with its 10:10 LGP Classic and 20:5 LGP Classic cannabis oils on an exclusive basis.
The agreement is conditional upon AMP completing a supplier qualification into LGP, which LGP estimates will complete during the second quarter of 2022.
Under the Agreement, AMP must purchase a minimum annual quantity of at least 2000 50 millilitre units within the first year, and 5000 units in the second year, provided that if Little Green Pharma distributes LGP branded oils on its own account, the quantities in the second and third years are reduced by 50 per cent.
AMP must also ensure that at least 10 per cent of the minimum annual quantities purchased are non-exclusive oil products.
If AMP fails to meet the minimum quarterly quantity for any two quarters, Little Green Pharma may cancel AMP’s exclusivity.
If there are any unsold products that have expired at the end of year one, LGP will be required to reimburse AMP with 50 per cent of the amount paid for these products.
Little Green Pharma was up 1.69 per cent to 60 cents at 11:06 am AEDT.