Update on Chinook's Investments in Germany
BERLIN, Feb. 5, 2019
BERLIN, Feb. 5, 2019 /PRNewswire/ - Chinook Tyee Industry Limited ("Chinook") (TSXV: XCX) is an investment finance company with two European subsidiaries, AMP Alternative Medical Products GmbH based in Erfurt, Germany and Mercury Partners & Company plc based in Valletta, Malta. Chinook has 10,217,796 fully diluted shares issued and outstanding and net investment assets of over $2.0 million (unaudited) as of September 30th, 2018.
About AMP Alternative Medical Products ("AMP")
AMP Alternative Medical Products GmbH, is a biopharmaceutical company based in the German state of Thuringia and provides medical cannabis formulations and dose delivery systems for German patients.
Since March 2017, German doctors can prescribe medical cannabis to patients suffering from serious illnesses which patients can get filled by pharmacists and generally paid for by German health insurance companies. AMP's business involves the purchase of EU-GMP medical cannabis from third party suppliers, and arranging transportation, logistics and storage services, for ultimate distribution through pharmaceutical distributors to pharmacists in Germany.
According to analytics firm Prohibition Partners at the 2019 Davos World Economic Forum, Europe's three largest medical cannabis markets, Germany, the Netherlands and Italy, could double in size in 2019, making this a "transformative" year for the European market.
In Canada, licensed producers of cannabis ("LPs") that enter into supply contracts with AMP are audited to ensure they meet EU-GMP standards before AMP arranges for EU-GMP certification. EU-GMP provides the standards, principles and guidelines of good manufacturing practices for medicinal products used in the European Union and sets the minimum quality standard for cannabis for medical use. For Canadian LPs that do not meet EU-GMP standards, AMP and its German pharmaceutical consultants cooperate to identify the deficiencies, provide advice on how to meet the standards, and conduct an audit upon completion of the upgrades. When the LP passes the audit, AMP arranges for the final EU-GMP certification by German State Officials. Upon final certification, AMP applies for the required import licenses to Germany. If required, AMP may provide loan financing for EU-GMP upgrades
By 2021, AMP plans to develop its own medical cannabis strains in collaboration with German patients, doctors and pharmacists for the German market.
AMP has raised $500,000 in equity and convertible debt financing in a Series A and B financings during 2018.
Other German Investments
Mercury Partners & Company plc, is a public liability investment company based in Valletta, Malta and has indirect investment holdings in German listed securities and real estate related investments.
This news release contains forward-looking statements that are based on Chinook's expectations, estimates and projections regarding its business and the economic environment in which it operates, including with respect to AMP's business plans, including AMP's ability to assist LPs with obtaining EU-GMP certification and export medical-grade cannabis to Germany and the timing thereof, expectations and estimates regarding the cannabis industry in Europe and the profitability of the medical-grade cannabis business in Germany; and AMP's plans to develop and product its own medical-grade cannabis strains. Although Chinook believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements and readers should not place undue reliance on such statements. Factors that could cause actual results to differ materially from those in forward-looking statements include general economic, market or business conditions, including the general acceptability of medical-grade cannabis in Germany, risks associated with regulatory changes and the retail sector generally, availability of personnel, materials and equipment on a timely basis, accidents or equipment breakdowns, uninsured risks and receipt of necessary TSX Venture Exchange approvals. These forward-looking statements speak only as of the date on which they are made, and Chinook undertakes no obligation to update them publicly to reflect new information or the occurrence of future events or circumstances unless otherwise required to do so by law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release
SOURCE AMP Alternative Medical Products