BERLIN, Jan. 15, 2020 /CNW/ - AMP German Cannabis Group Inc. ("AMP") (CSE: XCX), (Frankfurt: C4T, ISIN: CA00176G1028) provides an update on its strategy to become one of the leading importers of European Union - Good Manufacturing Practices (EU-GMP) medical cannabis into Germany through its network of suppliers from Canada, Europe and other non-European countries.
- Share floatation on the Canadian Securities and Frankfurt Stock Exchanges,
- Secured C$750,000 (€500,000) revolving drawdown loan facility,
- Raised C$1.5-million (€1,035,000) in Series A private placement priced at C$0.15 per share,
- Received import license for cannabis products for medical purposes for Germany from Thuringian State Office for Consumer Protection (Thueringer Landesamt fuer Verbraucherschutz) ("TLV"),
- Engaged leading German EU-GMP consultancy firm to qualify suppliers,
- Entered into pharmaceutical distribution agreement with CC Pharma GmbH, a large distributer of medical cannabis to pharmacists in Germany and a subsidiary of Aphria Inc. (NYSE: APHA),
- Entered into supply agreements with several Canadian suppliers soon to be qualified to export to Germany.
Proforma 2020 Objectives
- Announced Series B private placement to raise C$2-million (€1,3800,000) at C$0.25 per share,
- Enter into definitive supply agreements with Canadian suppliers who shall receive EU-GMP certification from TLV,
- Receive irradiation license from TLV to import irradiated medical cannabis,
- Complete EU-GMP audit of the German supply chain prior to first imports,
- Begin imports from the Netherlands in Q1,
- Begin imports from Canada in Q2,
- Develop European supply sources,
- Develop other non-European supply sources,
- Enter into additional pharmaceutical distributer agreements for the German market,
- Invest in promising cannabis start-up companies.
Insurance reimbursements for medical cannabis prescriptions are expected to exceed €100-million in 2019 making Germany Europe's largest medical cannabis market. Since legalization in 2017, Germany has been predominantly supplied by Canada and the Netherlands. However, other countries are developing pharmaceutical-grade cultivation standards in order to export to Germany as demand and insurance coverage for prescriptions continues to expand.
AMP qualifies its suppliers to ensure they can meet the German EU-GMP certification standards. Beginning this year, AMP plans to enter into definitive supply agreements with several EU-GMP certified Canadian suppliers for three strains of unprocessed cannabis flower. AMP will also be developing European supply sources from countries like Denmark and Portugal and outside Europe from countries like Israel and Australia to meet the growing German demand. Last year, AMP developed its logistics supply chain to import EU-GMP certified medical cannabis into Germany and subsequently sell to pharmaceutical distributers who supply pharmacies, the only authorized point-of-sale to German patients with medical prescriptions.
Dr. Stefan Feuerstein, President and Director of AMP comments, "Dutch and Canadian imports will begin this year and from European countries soon after. We anticipate the demand will continue to increase for the foreseeable future as the doctors and pharmacists learn more about the medical benefits of cannabis to German patients."
Mr. Alex Blodgett, CEO and Director of AMP comments, "AMP will be earning revenue from imports in Q1 and generating operating cashflow soon after when import volumes increase from Canada.".
About AMP German Cannabis Group Inc.
AMP German Cannabis Group is a specialized German importer of EU-GMP medical cannabis. For more information, please visit: www.amp-eu.com.
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This news release contains forward-looking statements that are based on the Company's expectations, estimates and projections regarding its business and the economic environment in which it operates, including with respect to its business plans and milestones and the timing thereof. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements and readers should not place undue reliance on such statements. These forward-looking statements speak only as of the date on which they are made, and the Company undertakes no obligation to update them publicly to reflect new information or the occurrence of future events or circumstances unless otherwise required to do so by law.
SOURCE AMP German Cannabis Group Inc.