MMJ PhytoTech Ltd’s (ASX:MMJ) indirect subsidiary Satipharm AG is making steady progress in the European cannabis market, recently receiving a "Free Sale Certificate" in Germany.
Satipharm AG is a subsidiary of Toronto Venture Exchange (TSXV) listed Harvest One Cannabis Inc (CVE:HVST), which is 59% owned by MMJ PhytoTech.
The German free sale certificate reduces constraints for international exports and removes the final regulatory trading impediments with other EU jurisdictions.
The free sales certificate establishes Satipharm’s cannabidiol (CBD) capsule as a food supplement rather than a "Novel Food".
Based in Cham, Switzerland, Satipharm AG is the pharmaceutical division of Harvest One and has developed pharmaceutical and nutraceutical products based on medical cannabis.
Importantly, Satipharm is the only company in Europe with a GMP (Good Manufacturing Practices) grade nutraceutical CBD product.
As a result, the company is expected to see an increased demand for the capsule across the EU and increased opportunities to enter other international jurisdictions.
Satipharm’s distribution network has rapidly expanded in 2017 with a focus on the largest European consumer markets: Germany, Denmark, United Kingdom, Ireland, Netherlands, Spain and Austria.
In these countries, Satipharm’s CBD Gelpell capsules are now available in several online shops, on Amazon, mail order pharmacies and in conventional brick and mortar pharmacies.
With some sizable contracts already in place, revenue is expected to be circa C$180,000 in the first quarter of the 2018 fiscal year, with further increases expected in the second quarter.