Agra Ventures' Subsidiary Farmako Positioned to Benefit from Germany's Impending Legalization of Recreational Cannabis
Agra Ventures Ltd. ("AGRA" or the "Company") (CSE: AGRA) (OTC: AGFAF) (FRA: PU30), a growth-oriented and diversified company focused on the international cannabis industry, is pleased to announce that its wholly owned subsidiary, Farmako GmbH ("Farmako"), is well positioned to benefit from Germany's planned legalization of recreational cannabis as the new Chancellor of Germany, Olaf Scholz, has recently vowed to make the change a top priority. The legalization of recreational cannabis in Germany would enable Farmako to expand its offering of cannabis extracts and dried flower as well as CBD and THC Testkits, while potentially also increasing the manufacturing and distribution of other cannabis products and accessories. Based in Frankfurt, Farmako is a GDP-certified pharmaceutical wholesaler that is currently focused on the medical cannabis market to facilitate patient access to reliable cannabinoid therapies and provide support to healthcare professionals.
The new German government is a coalition of three parties including the German Social Democrats, the German Free Democrats, and the Green Party. Traditionally, the German government has been more conservative and, therefore, this shift in the mix of its ruling political parties is expected to result in substantial changes. In a recent survey by infratest dimap, 49% of German citizens are in favor of recreation cannabis legalization. In 2014, only 30% of German citizens were in favor of legalization, which means that medical cannabis legalization and its use, as well as more research and understanding of cannabis and its benefits, have been revolutionary in the eyes of German citizens.
As of 2016, cannabis for medicinal purposes has been legal in Germany, however, further decriminalizing cannabis for recreational use is now a priority for the country's new government within the next two years. The German economy is expected to benefit from the change in law as it is projected that the government could earn $5 billion Euros annually in tax revenue and save money on policing. Not only do individual businesses like Farmako stand to benefit from the legalization of recreational cannabis in Germany, but its economy is predicted to grow, crime rate is forecasted to decrease and an estimated 27,000 new jobs are expected to be created.
More details on Farmako's products can be found on its website at www.farmako.de/en/.
Management Commentary
"Legalization of cannabis for recreational use in Germany is something that Farmako will definitely be happy to support and help to make happen. If cannabis is legalized and German citizens can get behind its responsible use based on a solid framework as we expect it, then we as a pharmaceutical cannabis provider are best positioned to import and supply our products to a significantly increased client base," said Katrin Eckmans, Managing Director of Farmako GmbH. "Sustainable production, highest medical quality and affordable pricing have always been priorities for our team, and legalization is expected to make it more efficient and effective for us to make a difference," added Ms. Eckmans.
"It only seems right for Germany to follow in Canada's footsteps when it comes to the legalization of cannabis for recreational purposes. We have seen how the addition of medical cannabis has benefited Germany in both economic and medicinal aspects, and AGRA believes that recreational cannabis will bring more positive outcomes for Germany just like it has for Canada," said Elise Coppens, Chief Executive Officer and Director of AGRA.
Settlement Agreement
The Company also announces that it has entered into a settlement agreement (the "Settlement") to resolve outstanding legal claims against the Company's wholly owned subsidiary, Sanna Health Corp. ("Sanna"), initiated by a former Executive of Sanna (the "Former Executive"). Pursuant to the Settlement, the Company shall issue to the Former Executive 552,609 common shares of the Company (the "Settlement Shares") in addition to a cash payment. The Settlement Shares will be issued at a deemed price per share of $0.4524. The Settlement Shares will not be subject to a four month plus one day hold as the Company is relying on the prospectus exemption for employees pursuant to Section 2.24 of National Instrument 45-106 - Prospectus Exemptions.