Deutsche Medizinalcannabis is both an importer and distributor of medical cannabis in Germany, with access to 20,000 pharmacies, a vast distribution network, and a solid focus on marketing and professional education.
The proposed deal will give Invictus an entrance into the European cannabis market, while the relationship with Deutsche Medizinalcannabis promises an extra link in the supply chain for Invictus in the North American market.
The only barriers in Invictus’s way yet to be overcome is a export permit from Health Canada, and a good manufacturing practice certification, as per the rules set forth by the European Union. After both of these are met, they will be able to ship dried cannabis flower to the German market. The EU-GMP certification is required to distribute medical cannabis across the EU. On the other partnership’s other end, Deutsche Medizinalcannabis needs to obtain an import permit.
“We are thrilled to partner with Deutsche Medizinalcannabis to supply medical cannabis to the German market. At present, there is insufficient supply to meet patient demand in Germany and this is a great opportunity to expand our distribution and sales beyond Canada. Both companies share the same beliefs regarding the importance of product quality and it has been a pleasure working with Deutsche Medizinalcannabis as we prepare our phase 3 facility at Acreage Pharms to be EU-GMP compliant,” said George E. Kveton, chief executive officer of Invictus.
The deal comes with a 90,000 square foot EU-GMP compliant facility, which the company projects will be completed in the new year, funded by a $25.5 million loan from ATB Financial. Shortly after this facility is complete, Invictus will be allocating $10 million remaining from that loan into another 90,000 square foot facility.
“Highest medical quality and reliable constant supply is what German patients deserve and what both, Invictus and Deutsche Medizinalcannabis, stand for. It has been a terrific experience to work with Invictus in achieving EU-GMP compliance for their Acreage Pharms facility. Invictus’s supply will ease the product shortage in German pharmacies and lay the foundation for Deutsche Medizinalcannabis to become Germany’s most reliable wholesaler of medical cannabis products. We are excited to further develop our international network of EU-GMP certified suppliers through this partnership,” said Cornelius Maurer, co-founder and CEO of Deutsche Medizinalcannabis.
Invictus views their progress towards EU-GMP certification as integral to their international plan. Countries such as Germany, Italy, Norway, Greece, Poland, Switzerland and the United Kingdom have either implemented or are in the process of implementing some form of legal medical cannabis. Many of these countries do not allow the cultivation of cannabis within their own borders. Invictus has since signed an LOI for cannabis sales into Germany, and intends to supply the German market with medical cannabis as soon as it can.
Here is an interview with Invictus MD CEO Dan Kriznic discussing the company’s trajectory:
Deutsche Medizinal Cannabis UG is based out of Ruhstorf, Germany, and has been operating as a subsidiary of AREV Nutrition Sciences (AREV.C) since July 12, 2018.
Full disclosure: Invictus MD is an Equity Guru marketing client.