- Binding LOI entered with HL Pharma Pty Ltd. for the importation and distribution of MMJ's medicinal cannabis products
- MMJ to work with HL Pharma to secure all necessary import licenses and permits
- Partnership will play a key role in MMJ's entry into Australian medicinal cannabis market and establishment of a secure supply chain
Under the agreement, HL Pharma will assist with establishing an Australian dispensary framework that enables the distribution of MMJ's medicinal cannabis products to approved customers.
Following recent changes to Australian Commonwealth legislation, legalising medicinal cannabis as a controlled prescription drug, MMJ will initially look to supply the Australian market with its sophisticated oral delivery products developed by its Switzerland-based subsidiary Satipharm AG ("Satipharm").
HL Pharma is a Melbourne-based specialist pharmaceutical wholesaler and distributor. The Company has more than 20 years of experience, supplying pharmaceuticals to hospitals, pharmacies, doctors, veterinarians and pharmaceutical wholesalers worldwide. HL Pharma is registered with The Victorian Department of Health and works under the code of Good Distribution Practice ("GDP") to supply pharmaceuticals.
MMJ PhytoTech's Managing Director, Andreas Gedeon, commented:
"We are very pleased to be partnering with HL Pharma to further establish our Australian supply chain, as we view the Australian medicinal cannabis market as an important part of the business.
With legislation continuing to evolve, it is advantageuos for MMJ to establish relationships with highly experienced local partners such as HL Pharma, to ensure a seamless entry into this market.
We look forward to providing our shareholders with further corporate and operational updates in the near-term."
About MMJ PhytoTech Ltd
MMJ PhytoTech Limited (ASX:MMJ) is focused on becoming a large-scale cannabis producer, targeting direct supply to the growing Canadian medical and recreational markets which will have an estimated combined value of C$8-9 billion by 2024. The Company controls operations across the entire medicinal cannabis value chain through three business units, strategically located in favourable jurisdictions with supportive regulatory frameworks in place.
MMJ has signed a definitive agreement with Canadian-based Harvest One Capital Corp. (CVE:WON.H) for the sale to Harvest One of 100% of the issued shares of United Greeneries Holdings Ltd and Satipharm AG.
United Greeneries Holding Ltd. has established world-class growing facilities in Canada, including the fully licensed Duncan Facility. MMJ is the first Australian-based company to receive a Canadian medicinal cannabis cultivation licence, and one of only a few companies globally with the capacity to commercially cultivate medicinal grade cannabis in a federally regulated environment.
The Company’s Swiss-based, medicinal products division operates under its 100% owned subsidiary, Satipharm AG, and is currently focused on developing regulatory compliant, unique oral delivery technologies that have the potential to deliver safe, effective and measured doses of medicinal cannabis to patients. MMJ began production of its first capsule product in May 2015, and is committed to providing novel treatment options throughout regulated markets globally.
PhytoTech Therapeutics Ltd is MMJ's Israel-based subsidiary responsible for the clinical research and development activities. In March 2016, PhytoTech Therapeutics completed a phase 1 clinical study which highlighted the safety and performance of Satipharm's capsule formulations in delivering CBD compounds to trial subjects.
MMJ PhytoTech Ltd