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Sativa Investments plc

Sativa Investments PLC joint venture with German-based Lexamed GmbH

Geremy Thomas, founder and Chief Executive Officer of Sativa, said: “Initially, Sativa Germany has secured office space in Stuttgart and are actively recruiting sales staff to exploit the growing demand for CBD products in Germany. Once regulatory compliance’s are met, Sativa will supply top quality medicinal cannabis products to the German market.

“This is an important step for the Company, as it allows an entry point in to the key German market to help continue its seed to consumer strategy.”

Sativa Investments PLC (NEX: SATI), the UK’s first medicinal cannabis investment vehicle, has established a joint venture with German-based Lexamed GmbH, forming a new German medicinal cannabis company named Sativa Germany GmbH, which will secure German wholesale, import and export licences for the distribution of medicinal cannabis products. The formation of Sativa Germany is subject to ratification by the German courts.

Whilst it is intended that, in due course, the medicinal cannabis products sold by Sativa Germany will be supplied by Sativa from the UK, this is subject to Sativa successfully applying for a Home Office Medicinal Cannabis licence. Sativa Germany will however source product from any jurisdiction where it is regulatorily accepted.

There will also be a Sativa office set up in Stuttgart for the sale of CBD products to be supplied by the Group’s subsidiary, George Botanicals Ltd.

Sativa will initially invest €80,000 into the joint venture project as part of its 60 per cent majority shareholding in Sativa Germany, which may then increase to a maximum investment of €250,000 once the German licence has been granted to the Group.

Germany allowed the use of medicinal cannabis by prescription in March 2017, and since then the demand for the product has developed exponentially, with the German market now one of the largest in Europe. Sales for medicinal cannabis in Germany for 2018 are expected to be at least €64 million, and the market continues to grow.

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Disclaimer: Statements in this article should not be considered investment advice, which is best sought directly from a qualified professional.