Emerald Health Therapeutics (EMH.V) has formed a partnership with Medical Plants SLU, a Spanish greenhouse grower. Through this partnership, Emerald will help Medical Plants produce high-grade GMP- certified medical cannabis dried flower for emerging European cannabis markets and Medical Plants will give Emerald an opportunity to buy GMP grade flower at a privileged price.
Medical Plants is a wholly-owned subsidiary of Cualin Quality, a high-tech tomato producer. Located in Almeria, Spain, the region of Europe with the most hours of sunlight, this area provides the perfect venue for quality greenhouse growth, and because it is a subsidiary of Cualin, Medical Plants will have access to their distribution networks once production gets underway.
In September 2020, Medical Plants received approval from the Spanish Drug and Healthcare Products Agency, making it only one of five medical cannabis producers in Spain, and expects to be fully GMP certified in 2021.
“We believe in the medical potential of cannabis that is achieving growing recognition by scientists. Our dream is to enable the use of such natural medicines to deal with issues such as pain and for diseases such as multiple sclerosis and epilepsy. The clients of Cualin’s existing business already demand high quality and uniformity of products, and we expect to deliver the same quality and competitive cost with this new crop,” said Pablo Sancho, CEO of Medical Plants. “We aim to be fully operational during 2021 with our initial 1,200 square metre greenhouse and to achieve our first harvest by year-end.”
To help themselves ramp up their production and ensure they receive their GMP certification, Medical Plants have entered into a partnership agreement with Emerald Health.
Emerald will provide cannabis seeds and seedlings, greenhouse construction experience, and cannabis growing expertise to assist Medical Plants in the establishment of its greenhouse-based production operation. EMH will also provide MP with the technology and know-how to produce Emerald Health’s value-added “Cannabis 2.0” products, which refers to their cannabis products beyond cannabis flower.
In return for their assistance, Emerald will receive a non-obligatory right to purchase cultivated dried flower grown by Medical Plants at a variable and privileged price.
The partnership will begin with an initial term of three years.
“We are pleased to establish this partnership with the successful Cualin team and its new Medical Plants venture, which will give us access to GMP-certified medical cannabis at preferential pricing but without purchase obligations or any capital investment. Medical Plants comes from an excellent pedigree of sophisticated plant-growing history, which along with its ideal location for cost-efficient growing, position it well to become a trusted premiere producer of medical cannabis dried flower,” said Riaz Bandali, President and CEO of Emerald Health.
EMH’s stock price has not moved significantly following the news.