Materia acquires authorized medical cannabis distributor and officially enters the German market

London, May 12, 2020 – Materia, a medical cannabis and wellness company focused on the European market, is pleased to announce that it has acquired 100% of the issued and outstanding shares of Cannaktiv GmbH, a licensed importer and distributor of medical cannabis products in Germany.

Based in Hamburg, Cannaktiv has obtained all the necessary licenses to import and distribute medical cannabis products to wholesalers and pharmacies throughout Germany, including:

• Wholesale distribution license granted in accordance with §52a of the German Medicines Act («AMG»)
• Certificate of Good Distribution Practices («GDP»)
• License for the distribution of medical cannabis flowers who have undergone treatment with ionizing radiation («AMRadV»)
• License to engage in the trade of narcotics in accordance with Section 3 of the German Narcotics Act (Betäubungsmittelgesetz, «BtMG»);

Materia will rename Cannaktiv as Materia Deutschland GmbH, emphasizing the commitment of the prescribers of medical cannabis and sales to pharmacies and wholesalers. As an industrial partner of the Association of Cannabis-Selling Pharmacies (VCA), Materia maintains relationships with VCA pharmacy members, who account for approximately 20% of the volume sold on the German medical cannabis market. Management expects to generate revenue starting in May through the distribution of medical cannabis products third party. Later this year, Materia Deutschland plans to import medical cannabis EU-GMP manufactured at Materia’s facilities in Malta, as well as a portfolio of products from other global partners. Materia is on track to receive the EU-GMP certification for its manufacturing plant in Malta in the second half of 2020.

«This acquisition provides Materia with immediate access to Europe’s largest cannabis market and a platform for importing EU-GMP-certified products. We now have direct control over the most critical components of the cannabis supply chain in Europe,» said Deepak Anand, CEO of Materia.

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The current framework for medical cannabis in Germany was introduced in March 2017. With a population of more than 83 million people and extensive public health insurance coverage, Germany is the largest and most the medical cannabis market in Europe and is poised to become one of the largest federally regulated cannabis markets in the world. According to data from the German National Association of Statutory Health Insurance Funds, public reimbursements for Medical cannabis sales in 2019 reached 123 million euros, representing an increase of 67% compared to 2018, and the number of prescriptions filled by pharmacies exceeded 267,000, representing an increase of 44% from 2018. In addition, it is estimated that 20 to 25% of all patients who use cannabis who do not have their treatments covered by statutory health insurance companies. Marijuana Business Daily estimates that the addition of these private prescriptions would increase the value of the German market to more than 170 millions of euros in 2019.

About Materia

Materia’s vision is to be the catalyst for global access to cannabis. Materia is developing a robust manufacturing and distribution ecosystem to expand the legal cannabis market across the European continent. With its research-focused team of experts and cutting-edge technology, Materia focuses on high-margin downstream activities—including processing, formulation, and distribution—in markets wherever a patient needs cannabis-based medicines or CBD users looking for new, innovative products.

For more information, please contact:

Dennis Fong, Investor Relations, Materia
Phone: 1-416-283-9930
Email: [email protected]