Medicinal research and nutraceutical wellbeing company Aether Pacific Pharmaceuticals (“Aether Pacific”, “APP” or “the Company”) is pleased to advise that it has entered into two Memorandums of Understanding (MOU) with leading pharmaceutical and medicinal cannabis distributor, Alliance Healthcare Australia Pty Ltd (‘Alliance’) for the supply and distribution of Aether Pacific’s New Zealand-grown medicinal cannabis into the Australian market.
The first MOU sets out the framework for the establishment of two new business entities to facilitate streamlined distribution and improved patient access for the Company’s NZ-grown medicinal cannabis. The new businesses will comprise a 50/50 Joint Venture management entity between Aether Pacific and Alliance for licensing purposes and the establishment of a Pharmacy entity to facilitate farm-to-patient distribution between the two parties.
The aim of the initial MOU is to provide prescriptions for medicinal cannabis through existing telehealth platforms and Aether Pacific’s 100%-owned dispensary business, the Pain Clinic. This has the potential to unlock sales growth for the Company, while continuing to broaden Alliance’s footprint across New Zealand and strengthening the relationship between both parties.
Under the second MOU, Aether Pacific will supply several strains of its premium dried cannabis flower to Alliance to market, sell and distribute in Australia. Alliance will have the opportunity to either white label the cannabis or sell it under Aether’s established Medical Kiwi brand, unlocking the potential to sell the first ever NZ-grown cannabis flower product into the Australian market.
Both parties will commence the relationship shortly, with a first delivery of 10g jars of various cannabis strains listed in the MOU. The product will be sourced from Aether Pacific’s 100%-owned medicinal cannabis growing division, Medical Kiwi and have a THC content of between 17% and 25%, in compliance with Australian regulations and the EU-cGMP standard.
Both MOUs bring considerable benefits to both parties, including an optimised supply chain between Australia and New Zealand, based on a farm-to-patient model which will provide end users with high-quality, NZ-grown medicinal cannabis products.
Aether Pacific will leverage Alliance’s established customer base, pharmaceutical sales knowledge and strong track record to drive sales growth and increase Medical Kiwi’s footprint in the Australian market.
Management commentary:
Aether Pacific Pharmaceuticals Chairman, Mr Aldo Miccio said: “These MOUs have the potential to unlock significant sales growth for Aether Pacific products in the Australian market. We are pleased to work with Alliance Healthcare Australia to foster these distribution pathways in a strategic way which leverages the respective strengths of both companies.
“Within the broader growth of the medicinal cannabis industry both in Australia and globally, we are focused on bringing an innovative partnership approach to capitalise on the sector’s momentum. In that context, the MOUs announced today both provide the Company with a significantly expanded addressable market while also further strengthening our working relationship with Alliance – one of the leading pharmaceutical Management Groups specialising in medicinal in the Australian market.”
Alliance Healthcare Australia CEO, Mr Brendon Rose added: “We are excited to be working with the Aether Pacific team on these strategic distribution initiatives, with the aim of providing Australian consumers with access to best-in-class medicinal cannabis products grown to the highest quality standards in New Zealand.
“The MOUs establish the framework for Alliance to take immediately delivery of premium cannabis flower for distribution in the Australian market, while also setting up a longer-term JV operating structure for a holistic farm-to-patient distribution model that aligns with the incentives of all stakeholders, and importantly our customers.”
Details for the Capital Market raise here and company information here.
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