Medicinal cannabis in Germany - Business Report

156 Confidential __________________________________________________________________________________ As reported by the news magazine "Der Spiegel", former Federal Foreign Minister and Vice Chan- cellor Joschka Fischer will become a member of the international advisory board of the Tilray com- pany . The Canadian company describes itself as a leader in the production of Cannabis. In a cooperation with the world's leading brewery group InBev, CBD and THC containing soft drinks are to be launched on the market. In addition, a global agreement exists between Tilray and Sandoz AG for the global marketing of medicinal Cannabis. Other Canadian Cannabis companies also pursue similar business models. Aphria very quickly took over CC Pharm as its distribution arm in Germany. At the same time, one has won as one of the three winners of the tender of the German Cannabis Agency 5 Loose a 200 kg for 4 years and builds the necessary indoors facilities. In addition, Aphria's German subsidiary holds a 25.2% stake in the Berlin hospital Schöneberg, which focuses on pain therapy, among other things. Dermapharm from Munich also has big plans for its Cannabis business. Through a strategic partici- pation in the Dutch FYTA Group, the company has secured access to Cannabis from Holland. Marketing in Germany will then be organised via the wholesaler Remedix, which specialises in the import of narcotics. Another business model was pursued by Farmako from Frankfurt. This is a start-up company in Frank- furt, which drew attention to itself primarily through various press releases. On the one hand, 50 tons of Cannabis were soon to be delivered to the German market via a cooperation partner in Poland, and on the other hand, a genetic engineering method for the production of Cannabis in bacteria was de- veloped, the patent for which is worth Euro was estimated. There were also reports of many qualified employees at the Frankfurt headquarters. ▪ Dermapharm, the listed pharmaceutical company, acquired a 20 percent stake in the Dutch FYTA Group in March 2019. ▪ FYTA has a licence from the Dutch Cannabis Authority to produce up to 12 tonnes of me- dicinal Cannabis annually. ▪ Currently, FYTA has indoor production capacities of up to 25 tons per year at the Waalwijk site. ▪ In the course of the transaction, Dermapharm cedes 49.9% of its shares in the re-importer Remedix to the investment company UWF in Monheim. ▪ Remedix (part of the AXICORP group) is specialized in the trade with narcotics and has a corresponding license from the Federal Opium Agency. ▪ Remedix will in future be responsible for the import of the FYTA Cannabinoids and their marketing in Germany.