- Little Green Pharma (LGP) Denmark enters a a second agreement with Cannamedical Pharma to exclusively supply its medicinal cannabis cultivar SMS
- LGP may deliver non-irradiated SMS product as an alternative to irradiated SMS product with the goal of delivering the first shipment in the first quarter of 2023
- Further, the agreement will allow the supply of SMS to Cannamedical for sale in Germany, subject to minimum quantities being ordered every six months to maintain exclusivity
- The minimum value of the agreement is about €3 million ($4.5 million) over two years
- Shares in Little Green Pharma have ended the day up 2.78 per cent to close at 18.5 cents
Little Green Pharma’s (LGP) Danish subsidiary has entered into a second agreement with Cannamedical Pharma for the exclusive supply of the company’s medicinal cannabis cultivar SMS.
Under the two-year agreement, LGP may deliver non-irradiated SMS product as an alternative to irradiated SMS product with the goal of delivering the first shipment in Q1 2023.
Further, the agreement will allow the supply of SMS to Cannamedical for sale in Germany provided the minimum quantities are ordered every six months to maintain exclusivity.
The minimum value of the agreement is about €3 million ($4.5 million) over two years, subject to purchasing minimum quantities.
Similar to the first agreement, all shipments are on free carrier (FCA Intercoms) from the company’s Danish facilities, with Cannamedical in charge of shipment and release in Germany.
Additionally, LGP’s sole liability for failure to achieve microbiological levels, late delivery, or failure to deliver, is re-delivery of the relevant shipment.
Established in 2016, Cannamedical is a German-based pharmaceutical pioneer with licenses to import medicinal cannabis into Germany and distribute and export it within the European Union.
The agreement facilitates LGP’s prompt replacement of SMS strain into the German market following the termination of Four 20 Pharma supply agreement.
Further, it demonstrates the desirability of the SMS strain and benefits of the company’s broad distribution partner base in Europe.
Shares in Little Green Pharma were up 2.78 per cent, trading at 18.5 cents by market close.