Canomed will establish a company in Germany that will distribute medical cannabis in Europe – the capital market

Medical Cannabis Company

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Reports that it has entered into a binding memorandum of understanding with an unrelated third party from Germany, which will help it establish a company that will operate in the country and purchase, distribute and sell drugs (including medical cannabis) to local pharmacies and other EU countries. No amounts were reported as part of the engagement, but Conomed described the consideration as “immaterial” for it.

The parties will work to promote a final and binding agreement, based on the memorandum of understanding, within 60 days from the date of its signing. According to the Memorandum of Understanding, the German side will assist Conanmed in the regulatory aspect, including applying to the Federal Institute of Medicines and Medical Devices in Germany for the appropriate licenses. The German side undertook to obtain the licenses within 3-4 months from the date of establishment of the designated company. Conomed noted that most of the proceeds from the transaction will be paid after the licenses are received, and if these are not received, the company will receive a full refund for the down payment paid.

“Our deep familiarity and understanding with the European cannabis market has enabled us to give Conanomed a strategic advantage,” he said. Said attorney Hagit Weinstock who promoted the deal On behalf of Weinstock-Zehavi Law Office, which leads the field of cannabis regulation and legislation in Israel, where it is a co-founder. “Direct ownership of a distribution license in Germany allows the sale of medicines and medical cannabis in Germany and in pharmacies throughout Europe, in addition to the 2 significant agreements that Conanomed in Germany has with the major distributors in this territory. “.

In recent weeks, Canomed has signed a number of multi-year agreements with pharmacies in Israel, for the distribution of its products in the amount of hundreds of kilograms of medical cannabis per year. The distribution will be made for it.

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With which she signed exclusively.

After in 2011 Conomed did not generate revenue, its expectation for 2020 is for revenue of NIS 23 million. As of the end of the second quarter, Kanomed is still at a loss, with a loss of NIS 2.5 million in the period, on revenues of NIS 5 million. The bottom line was affected during the reporting period by administrative and general expenses. Conomed paid NIS 600,000 for the merger with Biopharm as a one-time expense. NIS 700,000 was spent on directors’ salaries and NIS 1.2 million on professional services.