COVID-19 Might Force Distribution Delay for Germany’s First Cannabis Harvest

The first domestic harvest of medical cannabis in Germany could be delayed because of the ongoing coronavirus pandemic.

Germany

The Federal Institute for Drugs and Medical Devices in Germany wrote that it cannot be ruled out that there may be a delay in the first delivery as a result of COVID-19. The domestic harvest was meant to be ready for local distribution by October.

The documentation to find a distributor service was recently modified and now stipulates that the distribution service-provider applicant must be ready to start providing services by November 1st. the effective start date could be even later depending on when the first harvests are available.

The deadline to apply was extended by almost a month at first, and then was extended by another 2 weeks until the 9th of June. Applicants offers were required to be binding until the end of August.

The winning company will be responsible for distributing all medical cannabis flower produced in Germany to pharmacies.

The German subsidiaries of Canadian producers Aphria and Aurora Cannabis and Demecan, a Germany based company, are the only three domestic growers preparing to provide the first harvest to the winner of the distribution application process.

The contract with the Federal Institute is to collectively grow 2600 kilograms of pharmaceutical quality cannabis flower per year over a four-year period.

Meanwhile, medical marijuana businesses in Germany have successfully tapped capital markets amidst the COVID-19 crisis. Earlier this month, Demecan raised a 7-figure funding round with a German entrepreneur from the consumer goods sector. This funding comes on the heels of 2019’s raise of 7 million euros.

Dr Constantin von der Groeben, managing director of Demecan said that a large part of the funding will be used to build the growing facility. He did not disclose whether the company planned on trying to raise more capital before the first harvest or not.

The coronavirus crisis has shown how important it is that countries do not rely solely on global trade and that investments are made in domestic production, too.

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