February 1, 2019

Franchise Cannabis Acquires ACA Müller ADAG Pharma Gmbh, a leading Germany Medicinal Cannabis Distributor

To expand our global footprint, Franchise Cannabis has entered the Germany market with the acquisition of ACA Müller ADAG Pharma Gmbh (“ACA Müller”). We now have positioned ourselves in a dominant position in Europe with the fourth largest importer and distributor of medical cannabis in Europe’s largest and fastest growing medical cannabis market. ACA Müller is a business with a knowledgeable and well known founder with decades in the pharmaceutical business. The company has three decades of experience in pharmaceutical distribution and became 100% cannabis-focused in 2017 and is now in over 1,000 of 5,000 pharmacies in Germany that can legally sell medical cannabis.

Our German business has many opportunities for growth on a macro level. Germany a country of 83 million people has an estimated 30,000 registered patients, providing significant growth potential given it is a large wealthy country in the heart of Europe. The market is under supplied and filled with Canadian competitors who are more focused on their domestic recreational business than prioritizing German growth. As such there are only four to five dominant medical cannabis flower distributors in Germany currently. The German market is mainly focused on high THC medical cannabis flower sales.

Operationally, there are many opportunities to make the business more efficient and build a framework that is competitive on a national and international scale across the European markets.

We are planning supply our own medicinal cannabis products into Germany from Franchise cultivation assets in other EU countries to further increase margins and achieve fully integrated seed to sale operations in Europe. There are only seven certified EU GMP cultivation facilities worldwide currently producing medicinal cannabis flower. Medicinal cannabis exports to Germany currently come from the Netherlands and Canada.

For more information on ACA Müller visit: https://aca-mueller-gmbh.de/