AgraFlora Organics International Inc., a growth oriented and diversified international cannabis company, has entered into a Letter of Intent, dated October 30, 2019, with EuroLife Brands Inc. Under the terms of the LOI, the Companies will collaborate to curate custom, evidence-based cannabis content and associated learning modules to be deployed across EuroLife’s physician-sanctioned German cannabis education platform, Cannvas.de.
The integration of Cannvas.de into AgraFlora’s German vertically integrated medical/pharmaceutical ecosystem will afford the Company’s existing German patients and pharmaceutical partners unbridled access to independent, physician-backed and educator-approved cannabis literature and learning modules. Cannvas.de leverages machine learning algorithms and artificial intelligence (“AI”), coupled with a suite of automation tools, to contextualize and adapt to its users and deliver timely and relevant information based on identified behaviours and interests.
On October 25, 2019, AgraFlora announced the acquisition of 100 per cent of the issued and outstanding shares of The Good Company GmbH, the parent company of German EU-GDP medical cannabis distributor, Farmako GmbH (“Farmako”). Farmako’s German distribution network extends over 19,800 pharmacies and comprises an aggregate patient population of over 100,000 unique individuals.
AgraFlora’s exposure to a mounting patient population represents the critical mass required for the Companies to achieve defendable first-mover advantages within the German cannabis education marketplace, while initiating high visibility growth of its EU-GDP distribution channels. Additionally, AgraFlora and EuroLife will deploy Cannvas.de’s diverse analytical tool suite to assist with managing and measuring a host of key consumer data analytics, thus aggregating lucrative patient preference datasets to assist with further tailoring its product offering.
The German patient population for medical cannabis is experiencing exponential growth, with over approximately 100,000 patients now active as of October, 2019, an increase from approximately 800 in 2017. Prohibition Partners has forecasted that Germany will eclipse one million eligible medical cannabis patients by 2024.
With over 365,000 physicians, 2,200 hospitals and thousands of clinics, Germany is becoming a leading European Union (“EU”) member state within the emerging international cannabis industry. Patient numbers continue to experience geometric growth rates and cannabis product uptake continues to be robust across the country.
Brandon Boddy, Chairman and Chief Executive Officer of AgraFlora: “Our recent acquisition of leading German medical cannabis distributor Farmako affords us the distinctive advantage of unencumbered exposure to a large sample size of German medical cannabis patients. In collaboration with EuroLife, we will look to champion the German evidence-based cannabis education marketplace by leveraging proprietary data science techniques and advanced regression analytics.
The Cannvas.de platform will also bolster our efforts to strengthen our German doctor outreach programs, as well as the shepherding of high-profile corporate and university drug plan outreach initiatives.”
Further demonstrating the Company’s commitment to providing accessible cannabis education, EuroLife’s Director of Strategy and Education, Daniel Davidzon, was recently published in the National Post arguing for the crucial need for evidence-based cannabis education for cannabis consumers across Canada and the world. With so many cannabis-curious consumers confused over what treatments, products and services are available to them, the need for an education-driven marketplace has grown exponentially. AgraFlora and EuroLife are poised to lead the market with its repository of over 400 physician-backed and educator-approved articles and over 70 courses in its education platform.
“Germany is the first of many European markets in which we will be expanding our platforms, as that market, with a population of over 80 million is a key catalyst for our strategic revenue growth in 2020,” said Shawn Moniz, Chief Executive Officer, EuroLife Brands Inc. “We planned for the inclusion of additional language sets in the Cannvas suite of platforms with the goal of expanding into key markets and look forward to adding many more languages as we continue to deliver evidence-based cannabis education to the world.”
Under the terms of the LOI, it is contemplated that upon execution of a definitive agreement, AgraFlora will issue EuroLife Brands a predetermined amount of share-based consideration in the capital of the Company.