- Provides Corporate Update on Strategic Initiatives -
Toronto, Ontario--(Newsfile Corp. - November 18, 2019) - EuroLife Brands (CSE: EURO) (FSE: 3CMA) (OTCPK: EURPF) ("EuroLife" or the "Company"), a leading global markets cannabis brand empowering the medical, adult-use and CPG cannabis industry, is pleased to provide a corporate update as it moves to eliminate exposure to the Canadian cannabis marketplace in order to focus exclusively on the countries of Europe and the European Union.
"Earlier this year we began to take steps to significantly reduce our exposure to the Canadian cannabis market while strategically shifting our focus towards opportunities outside of North America," said Shawn Moniz, CEO of EuroLife. "Today we report the completion of the migration from Canadian markets to the European Union for all of our cannabis and hemp related business. Industry reports indicate the European medical and adult-use cannabis markets are large and growing with the German market leading the way. We are of the belief that the cannabis, hemp, and associated tertiary health and wellness product markets in Europe are still relatively untapped vis-à-vis North American opportunities. As such, we will continue to focus our business development resources in Europe as we aim to broaden our reach into this important marketplace."
In the past six weeks EuroLife Brands has formalized relationships with three important partners in order to bring new products to the European marketplace; The Yield Growth Corp., Champignon Brands Inc., and AgraFlora Organics International Ltd.
EuroLife Brands recently signed an agreement with the Yield Growth Corp. (CSE:BOSS) (OTCQB:BOSQF) (FSE:YG3) for the exclusive distribution of Yield Growth's line of mushroom infused coffee mixes being developed through its subsidiary Flourish Mushroom Labs Inc. in Germany, Switzerland, and the United Kingdom. The agreement also grants EuroLife Brands nonexclusive distribution in other territories for two years, with a provision to exclude one or more territories on two month's notice from Flourish Mushroom Labs.
In addition, further bolstering the Company's exposure to the burgeoning mushroom super-food segment, EuroLife Brands also recently secured an exclusive preferred distributor agreement with Champignon Brands Inc. relating to its portfolio of mushroom-derived CPG offerings including their flagship brand, Vitality Superteas for the jurisdictions of Germany, Switzerland, and the United Kingdom, in addition to non-exclusive distribution rights in various other locales globally.
The Company is also working with AgraFlora Organics (CSE: AGRA) (Frankfurt: PU31) (OTCPK: AGFAF), to curate custom, evidence-based cannabis content and associated learning modules to be deployed across EuroLife's physician-sanctioned German cannabis education platform, Cannvas.de. The integration of Cannvas.de into AgraFlora's German vertically integrated medical/pharmaceutical ecosystem will afford the Company's existing German patients and pharmaceutical partners unbridled access to independent, physician-backed and educator-approved cannabis literature and learning modules.
Once fully operational, the Company expects to integrate the various partner products into the EuroLife e-commerce platform along with potential distribution in select brick and mortar retail locations where EuroLife has touch points.
The German Cannabis Market
While there are limited statistics regarding the current number of German medical cannabis patients, varying sources suggest there are approximately 60,000. In the recently published "The Germany Cannabis Report", authored by Prohibition Partners, it predicts this number will rise to 1 million by 2024. Furthermore, the report estimates the total market value for German medical cannabis in 2018 to be 73 million euros. Prohibition Partners projects this figure will rise to 7.5 billion euros in 2028. Adult-use consumption and production in Germany is not currently allowed, but Prohibition Partners expects cannabis legalization to be gaining support and will eventually bring the German cannabis market to an estimated 16.2 billion euros in size by 2028.
A key driver of the cannabis market in Germany is the country's health care system. The public health care system covers up to 5 ounces of cannabis medication per medical user per month including cannabis flower, oils, and pharmaceutical products. (Sativex, Nabilone and Dronabinol).
About EuroLife Brands Inc.
EuroLife Brands (CSE: EURO) (FSE: 3CMA) (OTC Pink: EURPF) is a leading global markets cannabis brand empowering the medical, recreational and CPG cannabis industry worldwide through a data-driven CBD marketplace supported by exclusive and unbiased physician-backed cannabis education and detailed consumer analytics.
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No stock exchange or securities regulatory authority has reviewed or accepted responsibility for the adequacy or accuracy of this release.
Some of the statements contained in this release are forward-looking statements, such as estimates and statements that describe the Issuer's future plans, objectives or goals, including words to the effect that the Issuer or management expects a stated condition or result to occur. Since forward-looking statements address future events and conditions, by their very nature, they involve inherent risks and uncertainties. For a description of the risks and uncertainties facing the Company and its business and affairs, readers should refer to the Company's Management's Discussion and Analysis and other disclosure filings with Canadian securities regulators, which are posted on www.sedar.com.
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