- Little Green Pharma (LGP) signs a major sales agreement for the supply of cannabis flower medicines into Germany
- Little Green Pharma Denmark penned the three-year deal with one of Germany’s largest cannabis distributors, Demecan
- To maintain strain exclusivity, Demecan is required to purchase at least 450 kilograms per year of each of the three strains, representing around $9 million in total revenue per annum
- As part of the deal, LGP has a 12-month window to develop the agreed strains within specification, with subsequent supply subject to conditions
- Little Green Pharma shares are down 2.22 per cent, trading at 44 cents each
Little Green Pharma (LGP) has signed a major sales agreement for the supply of cannabis flower medicines into Germany.
Little Green Pharma Denmark ApS penned the three-year deal for the supply of white-label cannabis flower products to one of Germany’s largest cannabis distributors, Deutsche Medizinalcannabis GmbH (Demecan).
Under the agreement, LGP will provide Demecan with three high-THC strains for distribution across the country.
“The agreement gives LGP access to some of the best-in-class distribution services in Germany and potentially across Europe as the parties look to roll out these strains across the EU,” said Chief Executive Officer of Little Green Pharma, Fleta Solomon.
To maintain strain exclusivity, Demecan is required to purchase at least 450 kilograms per year of each strain, representing around $9 million in total revenue per annum for the three strains.
As part of the deal, LGP has a 12-month window to develop the agreed strains within specification, with subsequent supply subject to conditions. Demecan maintains the right to inspect first flower development crops.
Demecan must pay 50 per cent of the development costs of each strain successfully developed, subject to caps under the agreement.
“We are very pleased with this step-change in our relationship with Little Green Pharma, and believe it marks the beginning of a highly mutually beneficial partnership as we continue to provide high-quality LGP medicinal cannabis products to our patients and patients in Germany, and beyond,” said Managing Director of Demecan, Philipp Goebel.
Little Green Pharma shares dropped 2.22 per cent on the market today, trading at 44 cents per share at 12:49pm AEST.