Two Canadian cannabis companies received EU-Good Manufacturing Practice (GMP) certification, an essential step to exporting medical marijuana to markets in the European Union.
Brampton, Ontario-based producer Northern Green Canada received its EU-GMP certification March 4.
On the same day, Eve & Co subsidiary Natural MedCo earned a certificate of EU-GMP compliance for its Strathroy, Ontario, facility.
Eve has inked three nonexclusive agreements to supply medical cannabis to the German market.
So far, the certification has not been the revenue-generator Canadian companies predicted.
Obtaining the certification is a lengthy, costly process.
Canadian producer Tilray possesses multiple EU-GMP certifications, but its international revenue was only $4 million for its most recent quarter, down 30% from the previous period.
Alberta-based Aurora Cannabis, which also holds certifications of EU-GMP compliance, saw international medical cannabis sales fall 64% to 1.8 million Canadian dollars ($1.3 million) in its most recent quarter because of a temporary sales suspension in Germany.
Canadian cannabis license holder TerrAscend received its EU-GMP certification almost a year ago for its facility in Mississauga, Ontario, but thus far has not disclosed any revenue in the European Union.
TerrAscend completed its first international shipment of dry cannabis flower to its German distributor on Aug. 14, 2019, but a company spokesperson would not say whether it was for commercial or testing purposes.
The certification process takes longer than some companies anticipated.
Leamington, Ontario-based Aphria received its EU-GMP certification recently, about a year later than expected.
Germany is the target market for most companies seeking EU-GMP certification.
However, the German government does not know how much cannabis was sold in the country in 2019 and can’t estimate 2020 demand, adding to the challenges facing marijuana companies looking to tap that market.
Shares of Eve & Co trade on the TSX Venture Exchange as EVE.
Matt Lamers is Marijuana Business Daily’s international editor, based near Toronto. He can be reached at mattl@mjbizdaily.com.
