Apollon Formularies strikes out for the first time internationally as it teams up with South African cannabis company
Jamaica focused Apollon Formularies PLC (AQSE:APOL) has inked its first international deal – it will target the African cannabis market via a joint venture with Tri-Medi Canna.
As part of the tie-up, Apollon's South African partner is subscribing for £300,000-worth of shares in two tranches, the first £150,000 being at 2.5p.
Apollon says the JV, in which it will hold a 49% stake, provides “an additional avenue to monetise its proprietary medical and technical experience”.
It will receive a gross royalty on sales under the renewable agreement, which runs for an initial 12 months.
For its part, medical cannabis specialist Tri-Medi Canna is in the process of gaining a large volume cultivation license from the South African Health Products Regulatory Authority.
The opportunity is a big one with the African medical cannabis market expected to grow to US$7.1bn by 2023.
"This is a major step forward in Apollon's plans to reach global markets and the African market which still remains largely untapped,” said Stene Jacobs, Apollon’s chief operating officer for Europe and Africa.
“Tri-Medi Canna's relationship with necessary key stakeholders in South Africa will provide Apollon with the platform to infiltrate this market, whilst providing the local community with access to training, knowledge and skills and contribute to local employment.”< Back to News