Australian medical cannabis company Althea (ASX: AGH) has shipped its first products to a UK retailer and a company in Germany.
Althea and Grow Pharma Group signed a supply agreement to sell products within the UK last year, which has subsequently been expanded to include two additional jurisdictions, including the Isle of Man and Guernsey.
While the Althea brand has had a presence in the UK for some time, CEO Joshua Fegan says working with distributors like Grow Pharma will help accelerate industry growth (and, of course, Althea’s bottom line).
In January, the company reported UK sales of $ 209,706 in December 2020, up 90% from November 2020.
“With offices in the UK and Germany, Althea is at the forefront of this next frontier,” said Fegan.
With that in mind, the company announced earlier last week that it had completed its first shipment of medical cannabis products to Nimbus Health GmbH in Germany. In May last year, an agreement was signed under which Althea Nimbus would supply its entire range of medicinal cannabis products over a period of three years. In November last year, Althea received the All-Systems-Go for its products from the German supervisory authorities.
The initial delivery of 2,000 units is valued at approximately $ 1 million. The arrangement sounds like a pretty sweet deal to Althea – in addition to paying for the products, it receives 50% of the net profit.
According to Althea, the German medical cannabis market is the largest in Europe and is expected to reach A $ 12.2 billion by 2028. According to Fegan, Germany is currently undersupplied when it comes to quality medicinal cannabis oil products – much of that is due to ongoing delays in Canada’s ramping up domestic production.
Other recent European successes for Althea include the choice as an alternative supplier for France’s medical cannabis pilot program.
The company also seems to be developing quite well closer to home. Australian sales reached a record $ 902,466 in December 2020, up 22% from the previous month. It also had the highest average number of new patients and new healthcare professionals per business day in December.