Aphria German Sales underway from Neumünster FacilityReport from Europeen Cannabis Association may have some impact on Q2, since deliveries only started in July, 2021 and only from 1 out of 3 contracted companies...Aphria! 50kg is not much, but sales to the bottom line. Who knows what they delivered from August through to December.
Like to see a nice surprise out of Germany with an increase in Distribution Revenue, to add to Total Revenue. Of course the analyst will ignore germany as per usual.
Following a tendering procedure, the Cannabis Agency contracted three companies (Aphria RX GmbH, Aurora Productions GmbH and Demecan GmbH) to cultivate cannabis flowers in a quanity of 10,400 kg over four years with 2,600 kg each year and another company (Cansativa GmbH) to distribute the products on behalf of the Cannabis Agency. The tender included the option of possible additional production. Thus, the contract allows increases in production volumes and delivery of a maximum of 150 percent of the annual plan requirement. It is stated in industry circles that the quantities have already been adjusted upward.
The first deliveries of cannabis flowers from German cultivation were initially scheduled for the end of 2020. Due to the COVID-19 pandemic, as well as other reasons, cultivation was delayed. Thus, it was not until July 2021 that Aphria, so far the only producing company of the three commissioned, delivered cannabis flowers for the first time. Almost 50 kg of cannabis was delivered to pharmacies from the production facility in Neumnster.
As of December 2020, the Cannabis Agency pays cultivating companies an average purchase price of 2.20 EUR per gram whereas the agency’s dispensing price to pharmacies amounts to around 4.30 EUR per gram. The Cannabis Agency itself may not generate any profits. The price only takes into account the personnel and materials costs incurred by BfArM. As of today, it is about half of the usual delivery price to the market.
Should the three companies fullfil the contractually promised harvests one day, this could have a substantial influence on market prices.
https://www.europeancannabisassociation.com/medical-cannabis-made-in-germany/
eom
V