TORONTO, June 20, 2018 (GLOBE NEWSWIRE) -- Emblem Corp. (TSXV:EMC) (TSXV:EMC.WT) (OTCBB: EMMBF ) (“Emblem” or the “Company”), is pleased to announce that its Board of Directors has approved the Company’s formation of a joint venture under the name “Emblem Germany” (the “JV”) with German pharmaceutical wholesaler Acnos Pharma GmbH (“Acnos”) for the purpose of exporting Emblem branded cannabis products from Canada and importing them into Germany. Subject to completion of definitive agreements with respect to the JV, the JV will be 60% owned by Emblem and 40% owned by Acnos.
With a population of approximately 82 million and federal health insurance coverage for medical cannabis, Germany’s adoption of cannabis has created one of the largest legal medical cannabis markets in the world.
Subject to all applicable regulatory approvals and the entering into of definitive agreements setting out the terms of the JV, Emblem will supply the JV with cannabis oil for sale to German pharmacies, wholesalers and clinical labs for medical purposes. Teams from both companies are actively working to prepare and finalize definitive agreements setting out the terms of the JV, with the objective to commence export sales to Germany in 2019.
“Forming Emblem Germany with Acnos supports our market development efforts to establish world-class distribution channels in the regions where cannabis use is federally legal,” said Nick Dean, President and CEO of Emblem. Upon completion, Emblem’s new 30,000 square foot Good Manufacturing Practices ("GMP")-certified extraction facility will provide increased oil production capacity and significantly increase its extract and derivative product output to meet the expected demands of the German market.
“We have been impressed with the approach and progress Emblem’s medical division has made in establishing cannabis as a pharmaceutical product,” said Dirk Simonis, CEO of Acnos. “Emblem’s medical product innovation strategy is aligned to ours. We believe that medical cannabis products in Germany should be prepared in metered dose-controlled formats that physicians will feel confidence prescribing. From our experience, the long view of the German medical market is focused on oil extracts vs combustible products.”
John Stewart, President of Emblem’s Medical Division concurred, “Emblem was an early licensed producer to apply a pharmaceutical approach to the industry. We wanted to partner with a distributor with an equally strong background in the pharma industry. I am incredibly impressed with the knowledge and depth of understanding of the German pharmaceutical industry that Acnos brings.”
Subsequent to completing a definitive agreement with Acnos, the export of products to Germany will be predicated upon Emblem satisfying applicable regulatory requirements for shipping cannabis products to Germany. This includes completion of Emblem’s GMP certified laboratory in Ontario and associated receipt of European Medical Agency GMP certification. Emblem will also require a Health Canada issued export permit and provisional import status from the German Bundesopiumstelle (Federal Narcotics Bureau) to import medical cannabis products into Germany. Emblem’s GMP facility is currently on target for completion in the fourth quarter with first shipments to Germany expected to occur in 2019.
Mr. Dean added, “Today’s milestone further validates Emblem’s strategy for product innovation, leveraging the Company’s strong medical brand, and creating world-class distribution networks through relationships with the best partners in the business.”
About Acnos
Acnos Pharma GmbH is a pharmaceutical wholesaler based in Aachen, Germany. The company’s mission is to supply branded and non-branded medicines to pharmacies, wholesalers and other healthcare companies within the industry. By working closely with medical professionals and multinational manufacturers, Acnos strives for the highest and the latest standards and procedures to ensure the highest level of safety and quality. The quality management system and staff far exceed the industry's regulatory requirements and standards to ensure flawless, traceable and monitored product paths from the manufacturer to the customer.
About Emblem Emblem, through its wholly-owned subsidiary Emblem Cannabis Corporation, is a fully integrated licensed producer and distributor of medical cannabis and cannabis derivatives in Canada under the Access to Cannabis for Medical Purposes Regulations (ACMPR). Emblem’s state-of-the-art indoor cannabinoid factory and research and development facility is located in Paris, Ontario. Led by an experienced management team of healthcare executives, accomplished marketing professionals, and cannabis experts, Emblem is focused on driving shareholder value through product innovation, brand relevance, and access to patient and consumer channels. Emblem is also the parent company of GrowWise Health Limited, one of Canada’s leading cannabis education services. Emblem trades under the ticker symbol EMC on the TSX Venture Exchange.
For further information contact:
Ethan Karayannopoulos Investor Relations Emblem Corp. 647.748.9696 ethank@emblemcorp.com
Alex Stojanovic Chief Financial Officer Emblem Corp. 416.923.1331 alexs@emblemcorp.com
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This news release contains certain forward-looking statements and forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of applicable Canadian securities laws. All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "achieve", "could", "believe", "plan", "intend", "objective", "continuous", "ongoing", "estimate", "outlook", "expect", "may", "will", "project", "should" or similar words, including negatives thereof, suggesting future outcomes. In particular, this news release contains forward-looking statements relating to, among other things: (i) the timing and completion of the proposed facilities by the Company; (ii) the ability of the Company to utilize the new facilities to produce additional dried cannabis; (iii) potential sales of dried cannabis produced at the new facilities and the value thereof; (iv) the Company's future production capacity; (v) the availability of additional sources of financing; (vi) the ability of the Company to negotiate and enter into definitive agreements with respect to the JV; (vii) the Company’s ability to obtain all necessary regulatory approvals required to complete the export of cannabis to Germany; (viii) the demand for the Company’s products in the German market; (ix) the ability of the Company to produce high quality dried flower; (x) the intention to grow the business, operations and potential activities of the Company; and (xi) the size of the market expected to exist in Germany. Management of the Company believes the expectations reflected in such forward-looking statements are reasonable as of the date hereof but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. Various material factors and assumptions are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking statements. Those material factors and assumptions are based on information currently available to the Company, including data from publicly available governmental sources as well as from market research and industry analysis and on assumptions based on data and knowledge of this industry which Emblem believes to be reasonable. However, although generally indicative of relative market positions, market shares and performance characteristics, such data is inherently imprecise. While Emblem is not aware of any misstatement regarding any industry or government data presented herein, the medical marijuana industry involves risks and uncertainties and is subject to change based on various factors.
Forward-looking statements are not a guarantee of future performance and are subject to and involve a number of known and unknown risks and uncertainties, many of which are beyond the control of the Company, which may cause the Company's actual performance and results to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, the risks identified in the Company's December 31, 2017 Management's Discussion and Analysis, which has been filed with the Canadian Securities Administrators and available on www.sedar.com. Any forward-looking statements are made as of the date hereof and, except as required by law, the Company assumes no obligation to publicly update or revise such statements to reflect new information, subsequent or otherwise.
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