Germany’s Avextra AG, a medical cannabis company partly owned by Seed Innovations Ltd (LON: SEED), has expanded its European footprint by shipping EU-GMP certified cannabis extracts to Italy.
Avextra announced the accomplishment on Wednesday and says it is one of only three companies permitted to import medical cannabis products into the country.
The company also says that Italy has the second largest patient population for medical cannabis products in the European Union and that 70 per cent of that market is allocated to extracts like the ones Avextra has now imported.
“We have had extensive discussions with Italian doctors and pharmacies and see a clear need for standardized extracts in Italy,” said Avextra’s Co-CEO Bernhard Babel.
“Our Italian team have regularly participated in scientific conferences and built relationships with leading researchers and clinicians and see strong potential for medical cannabis therapies to grow and develop in Italy.”
#SEED is pleased to note an announcement released by its portfolio company, Avextra AG regarding the successful export of EU-GMP standardised #cannabis extracts manufactured at its German facility to its distribution partner in Italy.
— SEED Innovations Limited (@SEEDInnov) May 17, 2023
Avextra announced on Monday that it had raised £17 million to help expand its business from a series of private investors.
In February, the company began exporting its extracts into the United Kingdom where it currently holds an ownership stake in a series of medical cannabis dispensaries owned by Integro Medical Clinics.
Avextra owns a substantial cannabis cultivation facility in Portugal in addition to the German facility where the extracts were produced. The company was formerly known as the Eurox Group before rebranding itself as Avextra last fall.
Seed says that as of September 30 last year it owned a 6.6 per cent stake in Avextra on a fully diluted basis valued at approximately £4.4 million.
Seed’s shares are currently worth the equivalent of $0.03 on the London Stock Exchange, dropping by 0.79 per cent Wednesday.