German distributor HerbaMedica has agreed to purchase up to 600 kg of dried cannabis annually from Mera Cannabis for a term of two years, through a binding and non-exclusive supply agreement, according to a press release published by Mera. The agreement is said to be subject to certain increase rights. Mera is setting up its operations in Malta this year.
“We are excited to be one of the few businesses working with Canadian producers to bring Canadian medical cannabis products into Germany. Mera not only provides access to a high-quality product but a long-term strategy for growth in the medical market in Germany and across Europe,” David Höhne, Chief Executive Officer of HerbaMedica.
With a population of over 83 million and wide-spread statutory health insurance, Germany is expected to become a European powerhouse for medical cannabis. Mera’s facility in St Thomas, Ontario is designed to adhere to EU-GMP standards, as part of the company’s international development strategy. Mera expects to sell the majority of its outputs from its domestic facilities to growing international medical markets.
“With partners like HerbaMedica, Mera has the opportunity to capitalise on its experience and insights acquired through domestic operations and utilise that knowledge in the European Union. This agreement marks a significant milestone for both parties and will help bridge the gap between supply and demand in Germany,” says Zubin Jasavala, Chief Executive Officer of Mera.
The obligations of the parties following the supply agreement are conditional upon, among other things, each of the parties obtaining all necessary licenses and authorisations, including import/export permits and EU-GMP certification, says the press release.
Canadian medical cannabis firm Mera, formerly known as Avana, is expected to set up operations in Malta this year. The company considers the island nation in the Mediterranean to become a key player in its European expansion strategy.
“As part of our larger strategy to enter European medical cannabis markets, our upcoming Maltese facility will act as our cannabis processing and manufacturing hub. We will be importing crude oil into Malta to process into medical products such as tinctures (oils), gel capsules, sublingual strips and topicals (creams),” Emily Ondercin-Bourne, Marketing Manager at Mera Cannabis Corp, told Business Malta earlier.