ASX:LGP has signed an exclusive four-year agreement with PharmaServe for the distribution of LGP-branded oil medicines and cannabis flower in Greece.
The agreement is LGP’s first agreement for the supply of products from
LGP’s new Danish facility outside Australia and Denmark.
The Company will supply the medicines from its Australian and
Danish facilities (subject to deposit prepayment terms) and will
share product revenues on a 50:50 basis, subject to LGP receiving
certain minimum prices per unit.
"The Agreement also represents LGP’s first agreement for the supply of cannabis flower from its new Denmark facility outside of Australia, as LGP continues to progress agreements for a range of supply arrangements from finished LGP-branded medicines to bulk, white-labelled goods.”
Chief Executive Officer, Fleta Solomon.
The Agreement is conditional upon PharmaServe obtaining a Marketing Authorisation to distribute the LGP cannabis medicines in Greece. LGP’s exclusivity obligations are conditional upon PharmaServe achieving minimum revenues of €600,000 per year and there are no minimum quantity commitments under the Agreement. After a period of 2 years, PharmaServe may also require LGP to supply co-branded cannabis medicines in addition to the LGP branded medicines for prices to be agreed.