Chinook subsidiary, AMP Alternative Medical Products, receives €500,000 Series B financing to fund its medical cannabis business in Germany
ERFURT, Germany, Dec. 3, 2018 /CNW/ – Chinook Tyee Industry Limited (“Chinook”) (TSXV: XCX) announces that AMP Alternative Medical Products GmbH (“AMP”), its wholly-owned subsidiary, has entered into a €500,000 Series B drawdown loan facility provided by Taiga Atlas plc (“Taiga Atlas”). AMP completed a €75,000 Series A equity financing with Chinook during 2018.
AMP is a German based biopharmaceutical company developing medical cannabis formulations and dose delivery systems for patients in Germany. Proceeds from the financing will be used to build out AMP’s German sales and distribution supply chain and to assist Canadian licenced producers of cannabis (“LPs”) to become EU-GMP certified for exporting medical cannabis to Germany. AMP will import medical cannabis from LPs that have received EU-GMP certification and distribute their products to German pharmacies through AMP’s strategic partners. AMP is currently in negotiations, and expects to enter into supply agreements in the near term, with several LPs which includes AMP overseeing the LP’s EU-GMP gap analysis and audit to ensure final certification in Germany and provide financing for the EU-GMP upgrades if required. AMP intends to offer its services to any LP that wishes to enter into a supply agreement to export EU-GMP medical cannabis into Germany. By 2021, AMP anticipates developing its own medical cannabis strains (produced by LPs) in collaboration with German patients, doctors and pharmacists.
“Since legalization last year, the demand for medical cannabis in Germany has grown dramatically however patients cannot access the medication due to insufficient supply,” commented Dr. Feuerstein, Managing Director of AMP. “Imports, predominantly from Canada, will be the only reliable supplier to the growing German medical cannabis market even after domestic cultivation begins.”
Dr. Stefan Feuerstein and Mr. Claudio Morandi have been nominated by Chinook to stand for election as directors of Chinook at its upcoming annual general and special shareholders’ meeting to be held on December 5, 2018. Dr. Feuerstein is currently the Managing Director of AMP and a director of Taiga Atlas and was formerly Managing Director of IIC, an investment agency for Eastern Germany and TLW, German State of Thuringia economic development. Mr. Claudio Morandi is currently the Chairman of Taiga Atlas and formerly, Senior Vice President of MFC Merchant Bank Ltd., a specialty trade and structure finance bank.