Australian medicinal cannabis and healthcare company Little Green Pharma (ASX: LGP) has this morning announced a key purchase agreement with Berlin-based DEMECAN for the sale and export of up to 1000kg of dried cannabis flower or 48,000 units of medicinal cannabis per annum.
The agreement makes LGP one of the first few companies to export full spectrum medicinal cannabis oil products into the German market, one of the largest such markets in the European Union.
Limited domestic production and cultivation tendering delays has left patients underserviced in the German market, creating a timely opportunity for LGP.
The Company noted in their announcement that the German medicinal cannabis market is estimated to be worth AU$12.5 billion by 2028, with the number of prescriptions growing rapidly in the last 24 months.
“We are thrilled to enter into a partnership with DEMECAN. As the only company in Germany to cover the entire production chain for medicinal cannabis, DEMECAN is a leading supplier of medicinal cannabis in Germany,” said Little Green Pharma Managing Director Fleta Solomon.
“Germany is home to the largest population in the European Union and a rapidly growing medicinal cannabis industry.”
“The agreement with DEMECAN allows LGP to expand its sales and distribution footprint in Germany to meet the growing demand for medicinal cannabis.”
Little Green Pharma listed on the ASX only a week ago, following an oversubscribed $10 million IPO raise at an issue price of $0.45.
Although now below the IPO issue price, shares in LGP responded well to the announcement, reaching a high of $0.44 in morning trade, a rise of 8.64% on the previous day’s close of $0.405