CanniMed signs cannabis-oil supply agreement
Canada’s first licensed medical marijuana producer is preparing for the expected legalization of medical weed in South Africa by signing a cannabis oil supply agreement with a South African firm, which it says should help it expand into other African countries.
Saskatoon-based CanniMed Therapeutics Inc. said in a news release that its agreement with Akula Trading 2 Pty Ltd. “contemplates” the sale of its cannabinoid oil to South Africa’s 55 million residents, and that it is applying for the permits to do so.
CanniMed spokeswoman Dara Willis said the regulations for legal pot are expected to be in place by the fall, and that while the company does not yet have a sales projection, around 1,000 South African doctors are “ready to prescribe.”
“Today’s announcement marks another very significant milestone in the Company’s international expansion plans,” CanniMed president and CEO Brent Zettl said in a statement on Thursday.
CanniMed, which began trading publicly in December after its initial offering raised around $69 million, announced earlier this year plans for a $10.5 million expansion to its production facility southeast of Saskatoon. The company said at the time that the expansion could allow for the production of up 720,000 litres of cannabinoid oil each year — the equivalent of 12 million 60-millilitre bottles of oil. The expansion is expected to take 20 months and create 25 full-time jobs.
Graham MacKintosh, Akula’s chief operating officer, said in a statement that his firm has been looking for the right partner to provide a safe and consistent product for customers in Africa.
“There was no question once we began discussions and negotiations with CanniMed Therapeutics Inc. that they have a well-developed and proven medical cannabis brand for introduction to medical professionals in Africa.”