Medical cannabis company Kanabo Group has announced an extension to its existing contract between the GP Service and one of the UK’s largest group of retail businesses.
The recently acquired GP Service, originally partnered with the retailer in 2019 for the provision of general medical assistance for its members. The original agreement was limited to the submission of the patient’s medical history online where the GP Service doctors would review the information and complete the prescription for the retailer to arrange subsequent fulfilment and delivery of any approved medication.
Under the new contract extension, the GP Service will also now provide live video consultation services with prescriptions available for collection through the GP Service partner network of over 4,000 pharmacies across the UK. Users will normally see a doctor and may receive a prescription for collection on the same video call. In addition to prescription services, the GP Service will also provide fit notes and referrals.
Kanabo Group acquired the online GP service provider in February of this year in a deal worth £14m. The Israel-based medical cannabis company said it aimed to facilitate the rapid growth of the existing digital GP and telemedicine business and will establish a new and fully compliant channel to market Kanabo’s products for medical patients.
Kanabo Group CEO, Avihu Tamir said: “I am delighted to see this contract extension with a major retailer in the UK, which goes a long way to validating our rationale for the acquisition earlier this year. The GP Service is an innovative telemedicine provider, that forms an integral part of the overall strategy at Kanabo, and I look forward to extending our services in the UK further over the coming months and years.”
Consultations will be available between 8am and 8pm, Monday to Sunday, 365 days a year. Consultations are usually available within 30 minutes with approximately 95 per cent of all prescriptions available within 60 minutes of the consultation.
Atul Devani, CEO of the GP Service added: “The extension of this agreement reflects the successful relationship we have had since we began working together in 2019. Our integration with the NHS summary care records ensures our services are both safe & secure and we now look forward to extending our services to include virtual GP consultations with automated digital prescriptions.”
Medcolcanna signs European medical cannabis sales agreements
The company has entered into sales agreements with German company, Greenstein, and Cantourage.
Canada-based globally integrated medicinal cannabis company with operations in Colombia, Medcolcanna, has signed two EU sales agreements for EU-GMP and CUMS-IMC certified dried flower.
Medcolcanna has signed agreements with German-based Greenstein, as well as Berlin-based Cantourage.
The sales agreement with German-based Greenstein has a three-year term, with the possibility of extension, and establishes a minimum purchase of 1200 kg during the first year, 2000 kg during the second year and 2,500 kgs during the third year.
Its sales agreement with Cantourage for Germany and the UK has a five-year term, with the possibility of extension. The initial forecast presented by Cantourage establishes approximately 800 – 1000 Kgs for the first year.
Cantourage will distribute the flower through its proprietary clinics and distribution in the UK and through its network of pharmacies in Germany. Medcolcanna has developed a new brand for distribution with Cantourage in UK and Germany, followed by Poland within the next few months.
Six Medcolcanna proprietary strains have been already registered with the German Narcotics agency, and the production will be based on supply from the Medcolcanna farm located near Bogota. Additionally, THC quotas have been granted by the Colombian Government and are in place with the first exports expected by October to November 2022.
CEO Felipe de la Vega commented: “It has being a long and difficult journey since we created the company. A market that we were trying to understand and anticipate but that was being created. Therefore, making decisions was more complex.
“CBD market for extracts and isolates became very competitive with the US hemp farm bill affecting projections. The market for THC extracts is highly regulated, requires multiple certifications and a lot of investment, and still is a very small market compared with flower.
“Now the approval of flower export has allowed us to really gain traction in Colombia supply, as a high quality, low-cost producer, and the result of it is the multiple contracts we have now in place and we continue to negotiate. Starting November 2022, we expect recurrent revenue with high margins and good profitability.
“This combined with internal decisions that have helped us to reduce our G&A and cash burn makes our company a sustainable and profitable target for investors and we are pretty confident that before the end of the year we will be in a completely different situation.
“We continue supplying internally medical formulations currently approximately 300 per month and growing at 15 per cent per month. Now we are really getting to an interesting point for the company, with a very clear path forward and the possibility to generate profits for our investors.”
Curaleaf partnership to build platform for German recreational market
The company has entered into a strategic partnership with Germany’s Four 20 Pharma.
Curaleaf has acquired a 55 per cent stake in Four 20 Pharma – a fully EU-GMP and GDP licensed German producer and distributor of medical cannabis with its own product line.
Germany currently represents the largest medical cannabis market in Europe, with a total addressable market of over €200m (~£m) in 2022. This is expected to grow to nearly €1bn by the end of 2024 with the expected legalisation of recreational cannabis, expected to begin in late 2023 or early 2024.
Four 20 Pharma is one of the largest cannabis operators in Germany, with a greater than 10 per cent market share.
The partnership creates a strategic pathway for Curaleaf to acquire complete control of Four 20 Pharma within two years of the commencement of adult use in Germany. Curleaf has stated that the partnership also ensures alignment between Curaleaf and Four 20 Pharma’s current management team to rapidly build a best-in-class German business and a strong platform for Germany’s eventual adult use market.
Curaleaf executive chairman, Boris Jordan, commented: “By partnering with Four20 Pharma, Curaleaf’s European business will immediately gain additional critical mass and be in a superior position to capitalise on the accelerating trends in the European cannabis market.
“The opportunity in Europe cannot be understated, and Curaleaf is uniquely differentiated from other US MSOs via our already significant presence as the largest and most licensed cannabis company in Europe.
“With cultivation facilities in Portugal, manufacturing facilities in Spain and UK, rapidly growing patient numbers across Europe, particularly in the UK, Curaleaf serves the entire legal cannabis ecosystem and is also poised to capitalise on the adult use opportunity as regulation starts to unlock.
“This strategic transaction further underscores our aspiration to be the major player in the European market and the leading global cannabis company.”
President of Curaleaf International, Miles Worne, said: “Four 20 Pharma is a leading German distributor with a branded product that consumers love. They’ve captured significant market share in Germany by sourcing product from top EU-GMP certified suppliers around the world and building strong connections with German medical consumers by providing the highest quality flower in a namesake branded offering.
“As such, Four 20 Pharma is uniquely positioned to capitalise on Germany’s conversion from a medical to an adult use market and we’re thrilled to be partnering with their talented management team.”
Managing Partner of Four 20 Pharma, Torsten Greif, commented: “We have been exploring possible partners to stake our claim in the future German and European cannabis markets, and in Curaleaf we know we’ve found the undisputed leader and the best partner.
“From the beginning of our conversations, it was clear that they supported our strategic vision and respected our autonomy and entrepreneurial approach. Having full access to the tremendous knowledge and assets of the Curaleaf team will accelerate our future growth projects and help drive our company to the next level.”
Managing partner of Four 20 Pharma, Thomas Schatton, added: “Curaleaf shares our values of customer dedication and commitment to product quality, and we are incredibly excited about our future together.
“The team at Four 20 are thrilled to be able to leverage Curaleaf’s proven R&D expertise to help us continue delivering the best quality products to our medical patients and the promising future market.”
MGC Pharma receives first tranche of funding under new $10m financing facility
The financing facility will fund the execution of MGC Pharma’s business commercialisation strategy in the UK and US.
MGC Pharmaceuticals has confirmed it has received the first funding tranche of US$1.2m under a new US$10 million financing facility with Mercer Street Global Opportunity Fund.
The injection of funding will be used to further MGC Pharma’s business strategy, focused primarily on developing revenue growth through its partnerships with Sciensus Rare in the UK and Europe and AMC in the US.
The first portion of funding has been received in full and MGC Pharma will now issue 1.32m of convertible notes with a face value of US$1.00 each to Mercer Street. The company will also issue 21,511,545 fully paid ordinary shares to Mercer as part of the agreement.
The US$10m financing facility provides MGC Pharma with access to significant capital to fund the execution of its business commercialisation strategy in the UK and US as well as advance regulatory approvals for the company’s proprietary products in an effort to drive revenue growth, assist in the rollout of the ZAM App and provide funding for the group’s general corporate expenses.
The company will continue to implement “significant” non-revenue driving cost reductions within its operations, including the delay of non-core clinical trials.
Roby Zomer, co-founder and managing director of MGC Pharma, commented: “Mercer’s new US$10m finance facility provides the company with access to funding for MGC Pharma to continue to execute its business strategy of opening up key strategic markets over the next six months. During this period the business strategy will focus primarily on generating revenue growth through our existing relationships with Sciensus Rare in the UK and Europe, and AMC in the USA.
“In addition to its sales growth strategy, MGC is very excited about the potential value that the recent 40 per cent acquisition of the ZAM medical data collection App and its associated machine learning algorithm bring to the company.
“This investment is not only aimed at reducing R&D costs and providing the company with critical proprietary clinical data in the future but also provides the MGC with the potential for a future additional revenue stream and a value-creating asset on the back of the software’s successful implementation and rollout.”
The new US$10m financing facility fully funds MGC Pharma’s current business plan, the company said, and replaces the unused A$9.25 million of the previous funding facility established in September 2021.
- Medcolcanna signs European medical cannabis sales agreements
- Curaleaf partnership to build platform for German recreational market
- Tenacious Labs acquires CBD pet company Rover’s Wellness
- Khiron announces opening of first Zerenia medical cannabis clinic in Brazil
- MGC Pharma receives first tranche of funding under new $10m financing facility