Emblem Corp (TSXV: EMC) has announced a joint venture with German pharmaceutical wholesaler Acnos. The new entity formed by the partnership, Emblem Germany will allow Emblem branded cannabis products to be imported to Germany from Canada.
Emblem is a Canadian producer and distributor of medical cannabis and cannabis derivatives located in Paris, Ontario. They also own and operate GrowWise Health Limited, which offers information and education programs on medical cannabis to patients and physicians in Canada.
Acnos is a pharmaceutical wholesaler and distribution company based in Aachen, Germany and supply medicines to pharmacies, wholesalers, and healthcare companies. They believe that the German medicinal market is will become focused on cannabis extracts versus dried cannabis product.
Germany has a population of 82 million, creating one of the largest legal medical cannabis markets in the world. The German Parliament legalized medical marijuana in January of 2017 – but only for patients with serious medical illnesses– those suffering from multiple sclerosis, chronic pain, nausea from chemotherapy, and serious cases of appetite loss. In these cases, there is federal health insurance coverage for medical cannabis from the German government.
Emblem Germany will be supplied with cannabis oil for sale to Germany pharmacies, wholesalers, and clinical labs for medical purposes. Emblem has constructed a state-of-the-art extraction facility to meet the increased demands of the German market. Exports are expected to start in 2019.
Under the terms of the joint venture, Emblem Germany will be 60% owned by Emblem and 40% owned by Acnos.