Toronto, Ontario–(Newsfile Corp. – September 19, 2019) – Aura Health Inc. (CSE:BUZZ) (OTC:LMLLF) (the “Company” or “Aura“) is pleased to announce a multi-year supply agreement (the “Supply Agreement“) between 80% owned subsidiary Pharmadrug Production GmbH (“Pharmadrug“) and Israel-based My Green Fields Ltd. (“My Green Fields” or the “Grower“).
Beginning the five-year supply agreement, the medical cannabis product will consist initially of dry flower and complemented soon after by oils and extracts, all sold under Pharmadrug’s own ‘Cannabion’ brand. Terms for the first year are 500 kg of dry flower or oil equivalent at EUR4,00 per gram. Pharmadrug is currently distributing to pharmacies in Germany at EUR9,50 per gram. In the following years, Pharmadrug will have access to up to two tons of dry flower or oil equivalent per year at market-determined or mutually agreed upon prices. The supply will initially consist of high THC strains which comprises the majority of the demand for medical cannabis in Germany. The parties have also agreed to plan on importing high CBD/trace THC strains for other Eurozone countries that are CBD-only jurisdictions.
Located in Northern Israel, My Green Fields is a nursery and cultivation license holder that has nearly completed the buildout of one of Israel’s only indoor facilities. The operation will have 300,000 square feet of canopy utilizing advanced growing techniques. My Green Fields expects to plant its first harvest in January and expects its first commercial harvest in the summer of 2020. Although exports of medical cannabis from Israel have not yet begun, the law was passed in January and Aura believes the framework should be in place in the first half of 2020. While Israel is a GMP jurisdiction and the Grower’s facility is being built to euGMP standards, Pharmadrug will assist My Green Fields in ensuring it meets EuGMP standards, German regulatory approvals, and registration requirements. Assuming Israeli exports begin in the first half of 2020, Aura believes it can start receiving product from the Grower in Q3 of 2020.
Daniel Cohen, CEO of Aura, commented, “We are excited to enter this strategic partnership with My Green Fields, providing our German distribution base with additional supply in a market that remains very tight with chronic shortages. Our access to oils and extracts will be extremely beneficial to the Company in serving German pharmacies as well to other European markets.
“We are confident the launch of the Cannabion brand will serve Pharmadrug well as we grow our European distribution platform. Aura is in advanced discussions on further supply agreements that will enable Pharmadrug to expand the Cannabion brand and significantly increase its penetration into the nascent but fast-growing German medical cannabis market. Further, Pharmadrug intends to use this additional supply and capacity in Germany as a springboard to enter into new European markets.”
About Aura Health Inc.
Aura Health is building a vertically-integrated cannabis business focused on Europe and Israel. The Company (i) owns 80% of Pharmadrug, a German medical cannabis distributor, with a Schedule I European Union narcotics license allowing for the importation and distribution of medical cannabis to pharmacies in Germany and throughout the EU, (ii) owns a convertible note convertible into 54% of the outstanding equity of HolyCanna Ltd., a cultivation and nursery license holder in Israel, and (iii) agreement to own 57% of CannabiSendak Ltd., the builder of a network of dispensaries in Israel. Additionally, through significant extraction IP, Aura is dedicated to building a high-margin, downstream business of end-user products.
For further information, please contact:
Daniel Cohen, CEO
Aura Health Inc.
David Posner, Chairman
Aura Health Inc.
Deborah Honig, Investor Relations
Adelaide Capital Markets
Caution Regarding Forward-Looking Information:
THE CANADIAN SECURITIES EXCHANGE HAS NOT REVIEWED NOR DOES IT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
This news release may contain forward-looking statements and information based on current expectations. These statements should not be read as guarantees of future performance or results of Aura. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements. Such statements include reference to Pharmadrug’s ability to import supply from My Green Fields and distribute additional cannabis once available and potential revenue therefrom, the timing of the receipt of the additional cannabis supply coinciding with any changes in the current supply shortages in the German market, Pharmadrug’s ability to increase supply of cannabis and expand into additional European Union markets, the role of Israeli as a major supplier of medical cannabis, and the ability of the Company to building a high-margin, downstream business of end-user products. There is no certainty that any of these events will occur. Although such statements are based on management’s reasonable assumptions, there can be no assurance that such assumptions will prove to be correct. We assume no responsibility to update or revise them to reflect new events or circumstances.
The Company’s securities have not been registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”), or applicable state securities laws, and may not be offered or sold to, or for the account or benefit of, persons in the United States or “U.S. Persons”, as such term is defined in Regulation S under the U.S. Securities Act, absent registration or an applicable exemption from such registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in the United States or any jurisdiction in which such offer, solicitation or sale would be unlawful.
Additionally, there are known and unknown risk factors which could cause the Company’s actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information contained herein, such as, but not limited to dependence on obtaining regulatory approvals; the ability to locate additional supply of medical cannabis, owning interests in companies or projects that are engaged in activities currently considered illegal under United States federal law; changes in laws; limited operating history, reliance on management, requirements for additional financing, competition, hindering market growth; regulatory and political change.
All forward-looking information herein is qualified in its entirety by this cautionary statement, and the Company disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/47944