LONDON, May 12, 2020
LONDON, May 12, 2020 /PRNewswire/ -- Materia ("Materia" or the "Company"), a medical cannabis and wellness company focused on the European market, is pleased to announce that it has acquired 100% of the issued and outstanding shares of Cannaktiv GmbH ("Cannaktiv"), a licensed importer and distributor of medical cannabis products in Germany. Based in Hamburg, Cannaktiv has been awarded all of the requisite licenses to import and distribute medical cannabis products to wholesalers and pharmacies throughout Germany, including the following:
Materia will rename Cannaktiv to Materia Deutschland GmbH, with a focus on engaging prescribers of medical cannabis and selling to pharmacies and wholesalers. As an industry partner to the Association of Cannabis Selling Pharmacies (VCA), Materia has relationships with the VCA's pharmacy membership, which represent approximately 20% of volume sold in the German medical cannabis market. Management expects to generate revenue, beginning in May, through the distribution of third-party medical cannabis products. Later this year, Materia Deutschland plans to import EU-GMP medical cannabis manufactured at Materia's facility in Malta, as well as a curated portfolio of products from other global supply partners. Materia remains on track to receive EU-GMP certification for its manufacturing facility in Malta in the second half of 2020.
"This acquisition provides Materia with immediate entry into Europe's largest cannabis market with a platform to import EU-GMP certified products. We now have direct control over the most critical components of the European cannabis supply chain," said Deepak Anand, CEO of Materia. "Today, only a small group of producers supply flower and oils into Germany and distributors continue to face challenges in sourcing a consistent supply of high-quality products for patients. Leveraging our manufacturing capabilities in Malta, our ability to import and distribute a suite of products across different strengths and formats, and the direct relationships we are building with pharmacies and patients, Materia is ideally positioned to establish a significant presence in Germany."
Germany's current medical cannabis framework was introduced in March 2017. With a population of over 83 million people and broad public health insurance coverage, Germany is the largest and fastest growing major medical cannabis market in Europe and poised to become one of the largest federally regulated medical cannabis markets in the world. According to data from the German National Association of Statutory Health Insurance Funds, public reimbursements of medical cannabis in 2019 reached €123 million, an increase of 67% from 2018, and the number of prescriptions processed by pharmacies exceeded 267,000, an increase of 44% from 2018. In addition, there is an estimated 20-25% of all cannabis patients who do not get their benefits reimbursed by the statutory health insurance companies. Marijuana Business Daily estimates adding these private prescriptions would value the German market at over €170 million in 2019.
Materia's vision is to be the enabler of global cannabis access. Materia is developing a robust manufacturing and distribution ecosystem to grow the legal cannabis market across the European continent. With its expert, research-driven team and state-of-the-art technology, Materia focuses on the high-margin downstream activities of processing, formulation and distribution into markets wherever there is a patient in need of cannabis medicine or CBD consumers seeking innovative new products.
All statements, other than statements of historical fact, in this news release are forward-looking statements and are based on expectations, estimates and projections as at the date of this news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance are not statements of historical fact and may be forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors that may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and legal uncertainties; access to financing; the delay or failure to receive regulatory approvals; and other factors. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on the forward-looking statements and information contained in this news release. Materia does assume any obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change.