Akanda Corp. announced it has signed a multi-year supply agreement with European medical cannabis leader Cansativa GmbH to supply EU-GMP quality THC dried flower strains cultivated from its Portuguese operations at Holigen. This new supply agreement marks one of the largest for medical cannabis to be exported from Portugal to serve the emerging European medical cannabis market.

Under the agreement terms, Akanda will supply Cansativa Group with two EU-GMP quality strains of dried THC flower for distribution and sale to all pharmacies in Germany through the Cansativa platform. The contract specifies initial deliveries of a minimum of 1,000 kilograms (approximately 2,200 pounds) over the first 12 months, with a right of first refusal (ROFR) to take on additional quantities that could result in the full capacity utilization of Holigen's 2,000 kilograms per annum indoor production capacity. The initial shipment is anticipated to include up to 250 kilograms of each strain to be supplied no later than the fourth quarter of 2022.

Cansativa is the leading importer and distributor of medical cannabis in Germany, with a distribution network in the country that includes direct connections to all pharmacies, many cannabis suppliers and distributors, as well as several pharmaceutical wholesalers. Cansativa is positioned as one-stop-shop and offers the biggest multi-brand medical cannabis portfolio in the market. Over the last five years Cansativa has partnered with most leading cannabis firms and has become one of the key players in the cannabis industry in Europe.

Since the award of the Federal Institute for Drugs and Medical Devices (BfArM) in August 2020, Cansativa is the only company with approval for the distribution of medical cannabis from German cultivation.