A Vancouver-based company with financial stakes in Germany has had some recent financial success and expressed interest in pending cannabis legislation overseas.
On Monday, Greenrise Global Brands Inc. (Frankfurt: C4T) (ISIN: CA39540L1085) (CSE: XCX) released its second quarter financial results and commentary on the recent developments regarding adult-use cannabis legislation in Germany.
The commentary follows five public hearings held at the German Federal Ministry of Health with an assortment of leading experts concerning various aspects of the legalization process that concluded at the end of June. The federal government in Germany is expected to submit a draft law on decriminalization to the Bundestag (parliament) by the end of this year.
Greenrise is a Vancouver-based company that wholly owns AMP Alternative Medical Products GmbH, an Erfurt-based supplier of EU-GMP (European Union – Good Manufacturing Practice) medical cannabis for pharmacies; and a 51 per cent owner of CannaCare Health GmbH, a Hamburg-based producer and distributor of CBD health products.
Preliminary unaudited sales for AMP Alternative Medical Products GmbH increased by 14 per cent throughout the first half of 2022 to €268,479, up from €236,399 in the first half of 2021.
The company also reported that preliminary unaudited sales for CannaCare increased by 187 per cent in Q2, shooting up to €474,000 from only €165,000 in Q1 this year. CannaCare sells CBD merchandise through standard retail outlets in Germany and also distributes to other German-speaking markets throughout the European Union. The company acquired 51 per cent of CannaCare at the start of Q2 and claims to have an exclusive option to purchase the remaining 49 per cent.
“The exceptional sales growth from CannaCare during the second quarter confirms our strategy of investing in CBD in addition to medical cannabis as we prepare for the potential legalization of adult-use in Germany. We look forward to the government providing guidelines in the coming months, which will provide certainty on how and when to position our businesses. We expect pharmacies to play a significant role and are preparing our pharmacy customers for the possibility of selling adult-use products as well as soon as legislation is in effect,” said Dr. Stefan Feuerstein, Managing Director of AMP and Director at Greenrise.
Frank Otto, Director of Greenrise and Co-Founder of CannaCare stated that Germany was no longer debating whether or not to legalize cannabis but was now contemplating how to do it in a calculated methodical manner. He also said that the impending legalization in Germany would likely have a domino effect on remaining European countries still under prohibition, allowing them to become more like Canada and California.
“Greenrise’s investment allowed CannaCare to launch its CBD products in three leading German drugstore chains, which dramatically increased sales in a very short period of time,” said Dr. Tilman Spangenberg, Chief Financial Officer at CannaCare.
“We expect the full impact of this sales channel to unfold in the third as well as fourth quarter. Our priorities for the remainder of this year are to grow CannaCare’s sales and operating cash flow positive by introducing new sales channels and adding additional drugstore chains,” added Spangenberg.