Eve & Co confirms second German supply deal for sale of dried cannabis

It expects to begin shipments following the estimated Q2 2019 completion of its 780,000 square foot greenhouse extension

Eve & Co has recently announced that Natural MedCo Ltd, its wholly owned subsidiary has entered into a second binding non-exclusive supply deal for the sale of dried cannabis to a distributor and importer in Germany.

Sources close to the matter mentioned that the supply agreement is for an early term of three years and is automatically renewable for two succeeding two-year terms unless it is cancelled by the parties at the end of the renewal or initial term. For the first two months, the German supplier has agreed to buy 500 kg of dried cannabis per month, after which it will purchase a maximum of 5,000 kilograms and a minimum of 1,000 kilograms a month for the next 22 months.

Apparently, the company expects to begin shipments following the estimated Q2 2019 completion of its 780,000 square foot greenhouse extension, and the expected approval thereof from Health Canada.

According to President and CEO of Eve & Co., Melinda Rombouts, this is a very substantial supply deal for Eve & Co as it offers additional access into the German market. The timing fits well with the company’s expected extension facilities coming online and the related acceleration of production, Rombouts said.

Seemingly, under the supply agreement, the sale and purchase of dried cannabis are subject to several conditions precedent, including applicable Germany and Canadian export and import authorizations, and receipt of all requisite regulatory approvals.

Eve & Co has also reportedly announced that the German distributor and importer with respect to the initial German supply agreement of Eve & Co, as announced on 30 Jan 2019, has now received the essential import license from the German government. The company is currently in the process of seeking the essential export permit from Health Canada and expects that it will start shipping product pursuant to this supply deal by the third quarter of 2019.

Source Credit: https://www.globenewswire.com/news-release/2019/05/29/1856759/0/en/Eve-Co-Announces-Second-German-Supply-Agreement-Provides-Update-on-First-German-Supply-Agreement.html