EDMONTON, Alberta, Nov. 14, 2018 (GLOBE NEWSWIRE) -- Atlas Biotechnologies Inc. (“Atlas”) and its subsidiaries, including Atlas Growers Ltd., are pleased to announce the signing of a long-term sales agreement (the “Agreement”) valued at a minimum of 38,500,000 Euros ($58 million CAD) with avaleaf GmbH (“avaleaf”), a German pharmaceutical importer and wholesaler of medical cannabis.
This Agreement further strengthens Atlas’ emerging position as an industry leader with a focus on developing the medicinal qualities of cannabis and related extracts. Atlas intends to commence sales under the Agreement around Q2-2019 and supply avaleaf with a wide range of cannabis flowers, oils and pills. The Agreement has minimum annual purchase commitments by avaleaf, which ramp up each year and total a minimum of 38,500,000 Euros over the initial 5-year, renewable term. Deliveries of product will be subject to Atlas completing the process of obtaining its Sales License from Health Canada and meeting EU GMP (Good Manufacturing Practices) standards.
Sheldon Croome, Atlas President & CEO states: “We are excited to secure avaleaf as a partner for European distribution of Atlas’ superior-quality medicinal cannabis products. Our goal is to diversify our sales channels outside of Canada, and we look forward to further expanding our international customer base for delivery of products from our Alberta production laboratory, and from Atlas’ future production locations in Canada, the EU, and Central America. Atlas continues to attract top tier talent who are actively developing and researching the medicinal properties of cannabis and associated phytochemicals.”
The process of Atlas obtaining and exceeding GMP certification in North America and the EU is well underway. Atlas is positioning itself to be well established in the emerging European market, which has a population exceeding 700 million people, regulations that are becoming increasingly more favorable towards cannabis for medical use, and minimal legal domestic cannabis production.
Dr. Sven Sauer, avaleaf co-founder and managing director states: “We are very excited to partner up with Atlas. Both of our companies share the same vision of quality and medical research for the benefit of patients. We look forward to bringing high-quality medical cannabis solutions to patients in need across Germany and Europe.”
About Atlas Biotechnologies Inc. and Atlas Growers Ltd.
Atlas is based in Edmonton, Alberta, Canada and its wholly owned subsidiary, Atlas Growers Ltd., is federally licensed for Cultivation and Production of medical cannabis products. Atlas currently has a purpose-built, 38,000 square foot facility and laboratory where it can produce over 5,000 kg of dried cannabis annually as well as refine cannabis into isolated concentrates in mass capacity. Further, Atlas owns a 160-acre site that could allow for significant future expansion of cultivation capacity in Alberta, with a development permit in place for up to 1,000,000 square feet of additional construction. Atlas also owns 50% of Coastline Canada Inc., a late stage applicant with Health Canada that is anticipated to be licensed for cultivation on Vancouver Island in late 2019.
Atlas is well financed, raising over $24.3 million in equity to date, including $7.6 million related to acquisition of land and strategic investments, and also has available for future use a largely unutilized $6.25 million bank term loan facility.
About avaleaf GmbH
avaleaf is a privately-owned company based in Ruelzheim, Germany. avaleaf is currently obtaining all necessary licenses for importing and distributing medical cannabis into the European Union in general and Germany in particular. avaleaf is part of a network of licensed labs, warehouses, and distributors which allows avaleaf to flexibly react to increasing and changing demand in Germany as well as across Europe. Its founders have a proven track record as senior executives and business entrepreneurs, combining more than 40 years of experience in pharma, healthcare, investment management, business development and international investor relations.
For further information, please contact:
Jeffrey R. Gossain, P. Eng.
Vice President of Operations
Phone: 780-784-5920
Email: invest@atlasgrowers.com
Website: www.atlasgrowers.com
Graeme Dick, BMgmt
Colwell Capital Corp.
403-561-8989
graeme@colwellcapital.com
Dean Stuart
403-617-7609
dean@boardmarker.net
Dr. Sven Sauer, PhD., MD., JD.
Co-Founder and Managing Director of avaleaf GmbH
Phone: +49-151-528 15 528
Email: sven.sauer@avaleaf.com
Website: www.avaleaf.com