ERFURT, Germany, Dec. 3, 2018 /CNW/ - Chinook Tyee Industry Limited ("Chinook") (TSXV: XCX) announces that AMP Alternative Medical Products GmbH ("AMP"), its wholly-owned subsidiary, has entered into a €500,000 Series B drawdown loan facility provided by Taiga Atlas plc ("Taiga Atlas"). AMP completed a €75,000 Series A equity financing with Chinook during 2018.
AMP is a German based biopharmaceutical company developing medical cannabis formulations and dose delivery systems for patients in Germany. Proceeds from the financing will be used to build out AMP's German sales and distribution supply chain and to assist Canadian licenced producers of cannabis ("LPs") to become EU-GMP certified for exporting medical cannabis to Germany. AMP will import medical cannabis from LPs that have received EU-GMP certification and distribute their products to German pharmacies through AMP's strategic partners. AMP is currently in negotiations, and expects to enter into supply agreements in the near term, with several LPs which includes AMP overseeing the LP's EU-GMP gap analysis and audit to ensure final certification in Germany and provide financing for the EU-GMP upgrades if required. AMP intends to offer its services to any LP that wishes to enter into a supply agreement to export EU-GMP medical cannabis into Germany. By 2021, AMP anticipates developing its own medical cannabis strains (produced by LPs) in collaboration with German patients, doctors and pharmacists.
"Since legalization last year, the demand for medical cannabis in Germany has grown dramatically however patients cannot access the medication due to insufficient supply," commented Dr. Feuerstein, Managing Director of AMP. "Imports, predominantly from Canada, will be the only reliable supplier to the growing German medical cannabis market even after domestic cultivation begins."
Dr. Stefan Feuerstein and Mr. Claudio Morandi have been nominated by Chinook to stand for election as directors of Chinook at its upcoming annual general and special shareholders' meeting to be held on December 5, 2018. Dr. Feuerstein is currently the Managing Director of AMP and a director of Taiga Atlas and was formerly Managing Director of IIC, an investment agency for Eastern Germany and TLW, German State of Thuringia economic development. Mr. Claudio Morandi is currently the Chairman of Taiga Atlas and formerly, Senior Vice President of MFC Merchant Bank Ltd., a specialty trade and structure finance bank.
About AMP Alternative Medical Products
AMP Alternative Medical Products GmbH, is a biopharmaceutical company focused on providing cannabis formulations and dose delivery systems for German patients, with offices in Erfurt and Berlin Germany and Vancouver, Canada. For further information, visit www.amp-eu.com, Twitter or Instagram.
Chinook Tyee Industry Limited is a holding company, listed in Canada on the TSX Venture Exchange, with two European subsidiaries, Mercury Partners & Company plc, a Malta public liability investment holding company and AMP Alternative Medical Products GmbH.
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 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 product 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) accepts responsibility for the adequacy or accuracy of this release
SOURCE AMP Alternative Medical Products