TORONTO, ON--(Marketwired - January 19, 2017) - PharmaCan Capital Corp., doing business as Cronos Group (TSX VENTURE: MJN) ("Cronos" or the "Company"), is pleased to announce that the German parliament has expanded its medical marijuana program. In a landmark bill, members of Germany's parliament voted unanimously to legalize the use of medical marijuana and have implemented a policy that will provide health insurance coverage for patients with an eligible prescription. The medical marijuana program and accompanying health insurance regulations will cover both dried cannabis flower, as well as cannabis extracts.
Since October 2016, Cronos has been supplying medical cannabis to German patients under the prior, more restrictive program via its distribution partnership with Pedanios GmbH ("Pedanios"). Germany's previous medical marijuana program restricted access to patients suffering from serious chronic illnesses and patients were required to pay out of pocket for medication. Under the old program only ~1,000 patients were eligible, but the new regulations approved today significantly increase access for patients in need, simplify the prescription process, and provide health insurance coverage for registered patients.
"It is a historic day for patients in Germany, and, as one of the only licensed distributors in the country, we are proud to be a part of it. We are at the forefront of compassionate care, using breakthrough treatments and best-in-class medications procured through our partnership with Cronos. Insurance coverage for medical cannabis in Germany now clears the way for us to extend our joint venture across the EU as the regulatory environment continues to evolve," says Patrick Hoffmann, Executive Partner of Pedanios.
In December 2016, Cronos expanded the scope of its supply agreement to become Pedanios' exclusive North American supplier of cannabis products distributed within the European Union and Switzerland. Given that there is currently no established model for domestic production in Germany, today's regulatory announcement creates a unique opportunity for Cronos as one of only two Canadian licensed producers distributing medical cannabis to over 80 million potential patients in the German market.
"The approval of this landmark bill is a watershed moment for German patients, Cronos, and cannabis advocates around the world. It marks a significant development in our shared vision with Pedanios to offer patients access to an insurance-covered alternative. Through our agreement with Pedanios, we are excited to offer co-branded products not only within in Germany, but also throughout the European Union in the near future," says Mike Gorenstein, Cronos Group's CEO.
About Cronos Group
Cronos Group, is a geographically diversified and vertically-integrated cannabis company that operates two wholly-owned Licensed Producers ("LPs") regulated within Health Canada's Access to Cannabis for Medical Purposes Regulations (the "ACMPR") and holds a portfolio of minority investments in other Licensed Producers and ACMPR applicants. The company's flagship LPs, Peace Naturals Project Inc. (Ontario), and In The Zone Produce Ltd. (British Columbia) are collectively situated on over 125 acres of agricultural land and are currently licensed to produce 2,600 kg of cannabis on an annual basis. The Company also holds minority equity positions in Licensed Producers Whistler Medical Marijuana, Hydropothecary, and Abcann Medicinals. With interest in five Licensed Producers and two LP applicants, Cronos Group is focused on building an iconic brand portfolio, providing patients with compassionate and personalized care, and creating value for our shareholders.
This news release may contain "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian securities legislation. All information contained herein that is not clearly historical in nature may constitute forward-looking information. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive risks, uncertainties and contingencies that may cause actual financial results, performance or achievements to be materially different from the estimated future results, performance or achievements expressed or implied by those forward-looking statements and the forward-looking statements are not guarantees of future performance. Except as required by law, the Company disclaims any obligation to update or revise any forward-looking statements. Readers are cautioned not to put undue reliance on these forward-looking statements. This news release contains information obtained by the Company from third parties and believes such information to be accurate but has not independently verified such information.
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