Agreement will see Emblem export to one of the world's largest legal medical cannabis markets
TORONTO, Oct. 24, 2018 (GLOBE NEWSWIRE) — Emblem Corp. (TSXV: EMC, OTCQX:EMMBF) ("Emblem" or the "Company"), today announced that, through its wholly-owned subsidiary Emblem Cannabis Corporation ("ECC"), it has signed a definitive agreement with German pharmaceutical wholesaler Acnos Pharma GmbH ("Acnos") in respect to launching a joint venture under the name "Emblem Germany" (the "JV") for the purpose of exporting Emblem-branded cannabis products from Canada into Germany. The JV – owned 60% by ECC and 40% owned by Acnos – will allow Emblem to commence exporting its products to Germany, with first deliveries expected to be made in mid-2019.
With a population of approximately 82.5 million and federal health insurance coverage for medical cannabis, Germany has created potentially one of the largest legal medical cannabis markets in the world. Subject to all applicable regulatory approvals, Emblem will supply the JV with cannabis oil for sale to German pharmacies, wholesalers and clinical labs for medical purposes.
"Finalizing and signing the definitive agreement with Acnos is a critical first step towards the establishment of a world-class distribution channel that extends internationally to key markets including Germany," said Nick Dean, President and CEO of Emblem. "Our joint venture capitalizes on Acnos' significant market knowledge, depth of understanding, and experience as a distributor with a strong track record in the pharma industry. We anticipate incredible demand for medical cannabis in this market and with that comes an opportunity for Emblem to provide physicians, pharmacists and patients with its trusted, high-quality, innovative, and patient-focused products. Emblem is well positioned to begin operations in an important international market."
Emblem's new 30,000 sq. ft. Product Innovation Centre, which includes a 5,000 sq. ft. laboratory built to GMP standards, is expected to be online in Q1 2019. This expanded footprint will provide significantly increased oil extraction capacity required for Emblem to meet the expected demands of the German market.
"Emblem's medical division has positioned itself as an industry leader by innovating and producing high-quality pharmaceutical products," said Maximillian Claudel, Co-Owner of Acnos. "From our experience, the long view of the German medical market is focused on oil extracts versus combustible products. Emblem's experience innovating and delivering premium oil products to patients – along with the Company's imminent growth in extraction capacity – make it an ideal international partner for Acnos."
The export of products to Germany will be predicated upon Emblem satisfying applicable regulatory requirements for shipping cannabis products to Germany. This includes completion of Emblem's GMP-certified laboratory in Ontario, followed by receipt of the European Medical Agency GMP certification which is expected to occur in mid-2019. Emblem will also require a Health Canada issued export permit and provisional import status from the German Bundesopiumstelle (Federal Narcotics Bureau) to import medical cannabis products into Germany.
Mr. Dean added, "This milestone further solidifies Emblem's position as an industry leader in product innovation, branding and securing distribution networks. We are leveraging the Company's strong medical history to create lucrative, sustainable partnerships that continue to put patients first. This will be achieved by building long-lasting relationships with some of the best partners the industry has to offer."
Acnos Pharma GmbH is a pharmaceutical wholesaler based in Aachen, Germany. The company's mission is to supply branded and non-branded medicines to pharmacies, wholesalers and other healthcare companies within the industry. By working closely with medical professionals and multinational manufacturers, Acnos strives for the highest and the latest standards and procedures to ensure the highest level of safety and quality. The quality management system and staff far exceed the industry's regulatory requirements and standards to ensure flawless, traceable and monitored product paths from the manufacturer to the customer.
Emblem is a fully integrated cannabis company focused on driving shareholder value through product innovation, brand relevance, and access to patient and consumer channels. Through its wholly-owned subsidiary Emblem Cannabis Corporation, Emblem is licensed to cultivate, process, and sell cannabis and cannabis derivatives in Canada under the Cannabis Act. Emblem's state-of-the-art indoor cannabis cultivation facility and Product Innovation Centre is located in Paris, Ontario. Emblem is also the parent company of GrowWise Health Limited, one of Canada's leading cannabis education services. Emblem trades under the ticker symbol EMC on the TSX Venture Exchange.
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