Pharmadrug (BUZZ.C) and Eve & Co. (EVE.C) strike a bargain for European expansion

european
07/22/2020

Pharmadrug (BUZZ.C) and Eve & Co (EVE.C) subsidiary, Natural MedCo (NMC), entered into a supply agreement today for bulk and finished EU-GMP (European Union good manufacturing practice) certified medical cannabis.

The company will buy and import between 250-500 kilograms of bulk cannabis flower into Germany. NMC has their EU-GMP certification, and Pharmadrug will register the product to import it over the next few months. The flower will be packaged in Germany and sold by Pharmadrug using their own brand. The company should start seeing shipments arrive by the final quarter of 2020

“We are pleased to begin this new relationship with Eve & Co. The company is seeing a stronger than anticipated demand for medical cannabis in the German marketplace, but supply chain continues to be a challenge. Eve & Co. is one of the few Canadian cultivators that has been able to achieve EU-GMP certification and we believe it speaks volumes on their standards and operations. We look forward to working with Eve and Co and we hope we will continue to explore avenues of collaboration and potentially expand the supply agreement to include more strains and larger volumes,” said Daniel Cohen, CEO of Pharmadrug.

Management believes that the company will see some significant growth in the next year courtesy of their European expansion, and specifically their developing business in Germany. The number of pharmacies in their distribution network has tripled since the year started, but their supply of Bedrocan has dried up and doesn’t meet with Pharmadrug’s demand. They anticipate being able to achieve high volume in Germany through the expansion of their supply chain, with contracts like the one announced with Eve & co., and by padding on supply from agreements previously signed in Israel and Canada.

“We are very pleased to enter this agreement with Pharmadrug. We are impressed with their leadership, established sales and strong distribution network throughout Germany and look forward to working with Pharmadrug as both our companies grow into the German market,” said Melinda Rombouts, CEO and director of Eve & Co.

—Joseph Morton

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