Cann Group just bought some exclusive access to Europe’s biggest medicinal cannabis market
Health & Biotech
Health & Biotech
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Victorian-headquartered cannabis stock Cann Group (ASX:CAN) has bought its way into Germany’s medicinal cannabis market.
In return for a minor investment in German importer and distributor iuvo Therapeutics, iuvo has placed an initial order for 19,000 units of Cann’s 30ml cannabis extract.
Cann has paid CAD1 million into a CAD5 million capital raise by iuvo, which will give Cann around 2% of iuvo’s issued ordinary shares.
iuvo will use the funds to expand sales and marketing activities, and build a new manufacturing and formulation facility in Malta.
In return for the investment, Cann gets exclusive external rights. to supply iuvo subsidiary, iuvo Germany, with medicinal cannabis extracts up until December 31.
The initial 19,000 unit order will be shipped to Germany within the next month, subject to clearance approvals.
iuvo has access to more than 20,000 pharmacies across Germany. German sales in 2019 exceeded those of all other European markets combined, so it’s no surprise shareholders were on-board with the strategic move today, sending CAN up more than 5 per cent today to 63 cents:
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