Aura Health Provides Corporate Update on Pharmadrug Operations
Aura Health (CSE: BUZZ) released an operational update for its German operations known as Pharmadrug Production GmbH this morning, suggesting the European distributor should see roughly $2.7 million in sales for the year attributable to Aura.
Pharmadrug currently has an allocation from the Dutch government for 190 KG of cannabis per year, which is grown by Bedrocan. The company indicated that it had received its second shipment at the end of June from this allocation, which has lead to sales increases of 300% for the months of July and August when compared to the previous four months.
Achieving an average selling price of €9.50 per gram, Aura has provided an estimated sales figure of CAD$2.7 million for the year from this single source of income. This figure is after Aura’s 80% cut of Pharmadrug’s revenues.
With respect to the oncoming fiscal year, Aura Health also identified that it sees two paths to acquiring future revenue from its German operations. The first of which, is to secure an increase to its current allocation from the Dutch government. The second, is through securing additional supply agreements with Canadian and Israeli operators.
With respect to the latter, Aura has identified that it is in discussion with operators in both countries for additional supply agreements. In Canada, the firm is working with FSD Pharma to obtain EU-GMP certification at the Cobourg, Ontario based facility, which will signal the start of the previously announced supply agreement upon licensing. Aura also identified that they are in active talks with unnamed licensed producers in Canada, as well as undisclosed Israeli based operators. Aura expects to sign supply agreements with operators in both countries for the 2020 fiscal year.
Lastly, Aura reaffirmed its commitment to provide cannabis not only to the German nation, but to the European Union as a whole as cannabis becomes legalized. With its Schedule 1 Narcotics Distribution License, Pharmadrug is already able to provide narcotics to other EU nations. Thus, the firm expects to benefit from the growing legalization of cannabis across Europe, based on its excellent market position and growing cannabis supply agreements.
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