Emblem Corp. (EMC.V) (EMC-WT.V) (EMMBF) (“Emblem” or the “Company”), is pleased to announce that its Board of Directors has approved the Company’s formation of a joint venture under the name “Emblem Germany” (the “JV”) with German pharmaceutical wholesaler Acnos Pharma GmbH (“Acnos”) for the purpose of exporting Emblem branded cannabis products from Canada and importing them into Germany. Subject to completion of definitive agreements with respect to the JV, the JV will be 60% owned by Emblem and 40% owned by Acnos.
With a population of approximately 82 million and federal health insurance coverage for medical cannabis, Germany’s adoption of cannabis has created one of the largest legal medical cannabis markets in the world.
Subject to all applicable regulatory approvals and the entering into of definitive agreements setting out the terms of the JV, Emblem will supply the JV with cannabis oil for sale to German pharmacies, wholesalers and clinical labs for medical purposes. Teams from both companies are actively working to prepare and finalize definitive agreements setting out the terms of the JV, with the objective to commence export sales to Germany in 2019.
“Forming Emblem Germany with Acnos supports our market development efforts to establish world-class distribution channels in the regions where cannabis use is federally legal,” said Nick Dean, President and CEO of Emblem. Upon completion, Emblem’s new 30,000 square foot Good Manufacturing Practices (“GMP”)-certified extraction facility will provide increased oil production capacity and significantly increase its extract and derivative product output to meet the expected demands of the German market.
“We have been impressed with the approach and progress Emblem’s medical division has made in establishing cannabis as a pharmaceutical product,” said Dirk Simonis, CEO of Acnos. “Emblem’s medical product innovation strategy is aligned to ours. We believe that medical cannabis products in Germany should be prepared in metered dose-controlled formats that physicians will feel confidence prescribing. From our experience, the long view of the German medical market is focused on oil extracts vs combustible products.”
John Stewart, President of Emblem’s Medical Division concurred, “Emblem was an early licensed producer to apply a pharmaceutical approach to the industry. We wanted to partner with a distributor with an equally strong background in the pharma industry. I am incredibly impressed with the knowledge and depth of understanding of the German pharmaceutical industry that Acnos brings.”
Subsequent to completing a definitive agreement with Acnos, the export of products to Germany will be predicated upon Emblem satisfying applicable regulatory requirements for shipping cannabis products to Germany. This includes completion of Emblem’s GMP certified laboratory in Ontario and associated receipt of European Medical Agency GMP certification. Emblem will also require a Health Canada issued export permit and provisional import status from the German Bundesopiumstelle (Federal Narcotics Bureau) to import medical cannabis products into Germany. Emblem’s GMP facility is currently on target for completion in the fourth quarter with first shipments to Germany expected to occur in 2019.
Mr. Dean added, “Today’s milestone further validates Emblem’s strategy for product innovation, leveraging the Company’s strong medical brand, and creating world-class distribution networks through relationships with the best partners in the business.”
Acnos Pharma GmbH is a pharmaceutical wholesaler based in Aachen, Germany. The company’s mission is to supply branded and non-branded medicines to pharmacies, wholesalers and other healthcare companies within the industry. By working closely with medical professionals and multinational manufacturers, Acnos strives for the highest and the latest standards and procedures to ensure the highest level of safety and quality. The quality management system and staff far exceed the industry’s regulatory requirements and standards to ensure flawless, traceable and monitored product paths from the manufacturer to the customer.