Toronto, Ontario--(Newsfile Corp. - May 14, 2021) - PharmaDrug Inc. (CSE: BUZZ) (OTC Pink: LMLLF) ("PharmaDrug" or the "Company") a specialty pharmaceutical company focused on the research, development and commercialization of controlled-substances and natural medicines such as psychedelics, cannabis and naturally-derived approved drugs, is pleased to announce that it has entered into a supply agreement (the "Supply Agreement") with an emerging Eurozone cannabis extractor for medical grade THC oil to be sold under PharmaDrug's own brand. The Company expects to receive product and begin selling in Germany by September of 2021.
Pursuant to the Supply Agreement, the Company's licensed German distributor, Pharmadrug Production GmbH ("Pharmadrug Production") will purchase PharmaDrug branded medical cannabis from the Eurozone cannabis extractor. The cannabis extractor recently had its EuGMP inspection from their local regulator with no noted major deficiencies. The Company expects them to receive their certification in this current quarter. Pharmadrug Production has already performed an initial inspection, but will perform a final inspection June to satisfy the company's own GMP supply chain requirements. The Company has already finalized the final specs of the product with the extractor and expects to register the product with German authorities in July.
PharmaDrug expects initial shipments and sales to begin in September of this year. The company plans to have a twofold strategy for the PharmaDrug THC oil. Firstly, it will supply local German cannabis wholesalers while also selling directly to the Company's own pharmacy distribution network. Pharmadrug Production recently hired a senior 20-year veteran German pharmaceutical sales executive to continue to expand the sales team and carry out this strategy.
As previously disclosed, PharmaDrug's primary obstacle to the significant growth of its cannabis distribution business is the lack of supply. As such, management sought to increase its supply through additional channels of already approved product. The Company announced a supply agreement with a Canadian based multinational cannabis company in February. Pharmadrug Production received its initial shipment of product and has already begun sales and shipments. The short-term strategy will be to use this new line to increase revenue and expand the Company's own direct pharmacy network. PharmaDrug also anticipates carrying the LP's THC oil line in the second quarter. The Company will also seek out more relationships with Global LPs to be able to add to their lines of third party branded medical cannabis products.
Management is continuing to negotiate agreements with suppliers for Medical Cannabis flowers to be sold under PharmaDrug's brand. On that note, the Company is seeing the natural shift away from flowers to oils that eventually happens as cannabis markets continue to evolve. Regardless of that shift, the synthetic THC oil is still commanding a significant market share and the company is in talks to develop its own brand of synthetic THC oil.
Chairman and CEO Daniel Cohen commented, "We are extremely excited to sign this agreement to finally launch medical cannabis in Germany under our own brand. The company is making several movers to significantly increase its presence and volumes in the German medical cannabis market. Our focus will continue to be on market share growth with a keen eye on revenue growth and profits. These goals can only be achieved through increased product lines, developing of our own brand, and expanding our market presence."
On a final note, the company has received its shipment of initial PharmaDrug branded CBD oils. As previously mentioned, the company will seek to distribute the product via distributors and e-commerce platforms. With an established supply chain in place and final consumer packaging now finalized, management will be able to test the market out and determine its strategy for CBD oils in Germany and potential other Eurozone countries.
About PharmaDrug Inc.
PharmaDrug is a specialty pharmaceutical company focused on the research, development and commercialization of controlled-substances and natural medicines such as psychedelics, cannabis and naturally-derived approved drugs. The Company owns 80% of Pharmadrug Production GmbH, a German medical cannabis distributor, with a Schedule I European Union narcotics license and German EuGMP certification allowing for the importation and distribution of medical cannabis to pharmacies in Germany and throughout the EU. The Company also owns 100% of Super Smart, a Dutch company building a modern adult use psychedelic retail business with an elevated and educational focus. PharmaDrug recently acquired Sairiyo Therapeutics, a biotech company that specializes in researching and reformulating established natural medicines with a goal of bringing them through regulatory and research driven clinical trials.
For further information, please contact:
Daniel Cohen, Chairman and CEO
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 the Company. 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. 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 Regulations 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.
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