Danish company signs agreement to supply Polish market, worth DKK 40 million

DanCann Pharma has signed a supply agreement with Storkpharm for the Polish market. The agreement covers the period 2024 to 2025 and 2026 to be discussed during the period.

Storkpharm is a private hold pharmaceutical wholesale company in Poland, approved by Polish health authorities and with a widespread distribution network in the country that includes direct connections to pharmacies and hospitals. The company was established in 2005 and provides medicines, medical devices, food supplements, and cosmetics for public procurement with the consent of the Ministry of Health and other non-public entities both in Poland and in the European and non-European markets.

DanCann Pharma will sell and export flower products to Storkpharm with a focus mainly on the Tetrahydrocannabinol (THC) genetics and candidates. Storkpharm will purchase, import, package, market, and distribute the products to the European medicinal cannabis marketplace. The agreement is non-exclusive for the Products and is set for a 2-year period with a binding commitment of approx. DKK 41 million.

Within the Agreement, DanCann Pharma is subject to and guarantees that the Products are manufactured under Danish legislation, with guidelines set by the Danish Medicine Agency and hereby according to the Danish Ministry of Health requirements, including applicable rules for Good Agricultural and Collecting Practices (GACP), and European Union Good Manufacturing Practice (EU-GMP) standards.

The two companies expect the first shipment to commence during Q1 2024.

Jeppe Krog Rasmussen, CEO of DanCann Pharma, comments:

• "We look forward to doing business with the Storkpharm team. Storkpharm is a significant contributor to the European pharma industry with a clear strategic focus to enhance their medical cannabis business section. A long-term partnership is based on trust and common values, and DanCann Pharma is more than satisfied with this signed agreement and looks forward to the coming years and cooperation."
• "We are very pleased with the agreement and see it as yet another important signal to the market that DanCann Pharma is ready for business, following huge investments in our facility Biotech Pharm1 to comply with authority requirements in order to initiate sales and distribution activities of our Products for customers and patients around Europe. We are confident that DanCann Pharma and Storkpharm will form a strong coalition that will become a significant supplier to the Polish and European markets."

Piotr Kaczmarczyk, CEO at Storkpharm, comments:

• "We are all very pleased to be starting our partnership with DanCann Pharma and adding them to our group of selected producers and genetics collaborators. They are a professional, highly knowledgeable team who shares the same vision as us. Our customers will benefit from DanCann Pharma's excellent quality medicinal cannabis."
• "Storkpharm looks forward to the collaboration with DanCann Pharma together with its business partners - and with this move, Storkpharm plans, together with DanCann Pharma, to be a leading player on the Polish medical cannabis market over the next three years."