ERFURT, Germany and EDMONTON, Feb. 7, 2019 /CNW/ - AMP Alternative Medical Products GmbH ("AMP"), a subsidiary of Chinook Tyee Industry Limited ("Chinook") (TSXV: XCX), has entered into a non-binding Memorandum of Understanding Production Supply Agreement ("MOU") with Pure Life Cannabis Corporation ("PLCC"), a late-stage Health Canada applicant to become a licensed producer of cannabis ("LP") based in Edmonton, Alberta.
PLCC is in the process of building a 27,280 square foot Phase 1 facility, which it anticipates can produce approximately 2,000 kilograms of EU-GMP cannabis flower annually and 8,000 kilograms of cannabis flower product for the Canadian marketplace.
The non-binding MOU covers the purchase of up to 1,200 kilograms of cannabis flower annually in the first year of production, increasing thereafter when PLCC proceeds with Phase 2 and 3 expansion plans. Pursuant to the non-binding MOU, PLCC is in the process of conducting an EU-GMP gap analysis with AMP's German pharmaceutical consultants. Upon completion of the PLCC Phase 1 facility, AMP's German pharmaceutical consultants intend to conduct an audit of the facility. If EU-GMP standards are met, AMP and PLCC intend to enter into a Definitive Supply Agreement outlining pricing and monthly supply volumes, which agreement will also contain a number of conditions in order to complete the transactions contemplated herein. AMP intends to arrange for final EU-GMP certification by German State Officials and apply for the required import licenses for medical cannabis to Germany.
According to Mr. Alex Blodgett, CEO of Chinook, "We are delighted to have Pure Life on board as a medical cannabis supply partner especially as Germany is predicted to pass the one million patient milestone by 2024 (Prohibition Partners, The European Cannabis Report, January 2019, 4th Edition)".
About Pure Life Cannabis Corporation
PLCC is a Northern Alberta based high tech agriculture organization. Their operations will include in-house laboratories, state of the art growing facilities and fully integrated data driven growing systems. Gaining EU-GMP certification and Health Canada licensing to distribute cannabis is apart of the PLCC strategy to build its presence nationally and internationally.
About AMP Alternative Medical Products GmbH
AMP is a German biopharmaceutical company based in Erfurt, Germany whose business is to provide medical cannabis formulations and dose delivery systems for German patients. AMP's business involves the purchase of EU-GMP medical cannabis from third party suppliers, and arranging transportation, logistics and storage services, for ultimate distribution through pharmaceutical distributors to pharmacists in Germany.
AMP is a subsidiary of Chinook Tyee Industry Limited, an investment issuer listed on the TSX Venture Exchange (TSXV: XCX). Chinook has 10,217,796 fully diluted shares issued and outstanding and net investment assets of over $2.0 million (unaudited) as of September 30, 2018.
This news release contains forward-looking statements that are based on Chinook's expectations, estimates and projections regarding its business and the economic environment in which it operates, including with respect to Chinook's business plans, including its ability to assist LPs (including PLCC) with obtaining EU-GMP certification and export medical-grade cannabis to Germany and the timing thereof, Chinook's expectations and estimates regarding the profitability of the medical-grade cannabis business in Germany and Chinook's plans to develop and produce its own medical-grade cannabis strains. Although Chinook 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. Factors that could cause actual results to differ materially from those in forward-looking statements include general economic, market or business conditions, including the general acceptability of medical-grade cannabis in Germany, risks associated with regulatory changes and the retail sector generally, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, uninsured risks and receipt of necessary TSX Venture Exchange approvals. These forward-looking statements speak only as of the date on which they are made, and Chinook 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.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.
SOURCE AMP Alternative Medical Products