Medicinal cannabis in Germany - Business Report

163 Confidential __________________________________________________________________________________ In the case of outdoor cultivation under optimal climatic conditions, the COGs can be reduced to less than one euro . Experts assume that the Cannabis agency will buy the indoors Cannabis of the three licensed grow- ers in Germany (Aurora, Aphria and Demecan) at a price of four to five euros. Since the Cannabis Agency, according to the law, is not supposed to make a profit, it could resell the purchased Cannabis to wholesalers and/or pharmacists at a not much higher price. Due to the increasing import of Cannabis flowers from Israel, for example, the price of Cannabis flowers will continue to fall over the next few years. According to Graspreis.de, the black-market prices for 1 gram of Cannabis flowers are a little over 10 Euros on average in Germany. On Graspreis.de you can also find places in Germany where you can buy the gram of Cannabis flowers for five euro. 10.2 Cannabis extracts There is a great variety of extracts, as all kinds of carriers and different types of extraction methods are used. The selected carriers, together with the special method, give the Cannabis extract a specific texture, taste, potency and appearance. Two of the primary extraction methods for medical Cannabis are supercritical CO 2 extraction and ethanol extraction. The most commonly used method is CO 2 extraction. This process is dependent on the conversion of CO 2 into a supercritical fluid. This is done by the action of temperature and pressure until the supercritical, liquid form is reached. At this point carbon dioxide can act as a solvent. This solvent is then pressed, for example, through an extraction vessel filled with finely ground Cannabis flowers of the plant Cannabis Sativa. A distinction is made between full-spectrum and partial-spectrum extracts, which can then also have correspondingly different effects. So far, the companies Bionorika and Tilray have dominated this sub-market. The full extract THC 50 from Vertanical is just coming onto the German market. This extract from Vertanical is only the first product, further extracts (CBD 50, THC 50/CBD 50) as well as flowers will follow in the coming weeks. So far, the three cannabis extracts offered in Germany do not differ significantly in price. Further suppliers of cannabis extracts are expected to enter the market within the next five years and conse- quently the price level for cannabis extracts will decrease.