The company has also signed an outline letter of intent with one counterparty for the offtake of the eventual supply of finished pharmaceutical and medical grade cannabis ingredients
Inc () said it has secured a supply agreement-in-principle of pharmaceutical and medical grade cannabis ingredients totalling a minimum of 8,400 litres of extracts in 2021.
The refined cannabis ingredients maker said the agreements will ensure access to GMP-compliant pharmaceutical and medical grade cannabis for its planned Portugal-based refinery, adding that it has also signed an outline letter of intent (LOI) with one counterparty for the offtake of the eventual supply of finished ingredients.
READ: EXMceuticals secures $2.3M in financing as cannabis producer responds to coronavirus pandemic
EXMceuticals also said that Farmceutica Wellness, a supplier of medical grade cannabidiol (CBD) ingredients, will initially supply up to 4,200 kilograms (kg) of pharmaceutical grade cannabis ingredients to it annually.
The firm intends to purchase up to 9,400 kg annually after the refinery is fully equipped, while a separate LOI is under negotiation for bulk THC importation.
Farmceutica has also signed an outline LOI that will give it the ability to distribute refined cannabinoids manufactured in the refinery, with a focus on the active pharmaceutical ingredients.
EXMceuticals said these agreements will provide sufficient input material to begin operations at its facility as soon as it becomes operational, which assuming funding is received is expected to be the first quarter of 2021.
The refinery will turn raw material and extract into pure finished ingredient products including distillates, isolates and active pharmaceuticals ingredients which will initially be sold on a B2B basis.
Once revenues are achieved EXMceuticals will then seek to enhance revenues by creating final customer products that have been formulated in the existing research and development laboratory in Lisbon.
The company also said that it is in discussions with other emerging producers of GMP compliant cannabis in Portugal, and around the world, that will produce extract to the highest quality standards, saying its position in the middle of the supply chain, will hopefully allow it to emerge as the largest contract manufacturer for the European medical market.
In a statement, EXMceuticals chief executive, Jonathan Summers, said: "These outline supply arrangements are an important step for EXM, as we continue to establish our business model. Securing high-quality source materials from stable sources is a key component, and we have faith these groups will be meaningful partners of ours.
"EXM is now focused on industrial purification, refining and extraction, coupled with a meaningful R&D operation. We aim to be a trusted European source of high-quality cannabis products for the growing demand of the pharmaceuticals and medical Industries. We are eager to work closely with Farmceutica and to provide consistent product to our future clients.”
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