“Unlike Coles and Woolies, who have an antagonistic relationship with their suppliers, we love our suppliers and know that without them we would be nowhere. That’s why we want to close deals that improve our position and yours. Justice gives us a stronger incentive to make it work. “
The deal is similar to the deal signed between Chemist Warehouse and baby food and grocery maker Bubs Australia in 2019 that resulted in Chemist Warehouse amassing a 10 percent stake as various milestones were reached. It also has a share agreement with Buy Now Pay, later Player Fu.
The terms of the Cannatrek Agreement were not disclosed, but it also includes a small portion of the upfront equity made available to the Chemist Warehouse and additional portions that depend on specific goals.
Due to a recent change in the law, pharmacists can dispense CBD products. Tash Sorensen
Cannatrek will partner with Chemist Warehouse to exclusively develop and launch new CBD products. These are sold under one of the Chemist Warehouse brands. Both parties hope that the products will be quickly available to the general public.
The Chemist Warehouse is also already selling Cannatrek’s THC cannabis products.
Under Australian rules, individuals can only access List 8 (controlled medicines) and List 4 (prescription medicines) medicines only through a script from a doctor or specialist under the SAS-B licensing system.
Thanks to a recent decision by the TGA to downgrade certain low-dose CBD products from Schedule 4 to Schedule 3, some will be available to the public over the counter this year.
Founded in 2015 by CEO Tommy Huppert, Canntrek began building their local farms and development operations as soon as medical cannabis was legalized in Australia in 2016.
It operates a farm in Queensland and is also building an operation in Shepparton.
An export deal was signed with Astral Health in the UK last year.
“It’s like over-the-counter vitamin C in the US and UK. This new law change [in Australia] is extremely exciting for the industry, ”he said.
“We are only four years old. The first year was licensing and compliance, then companies like us started building farms. This year the supply chain will mature significantly.
“In the near future it will be a lot more mainstream. And we now have thousands of doctors in Australia prescribing it. “
Cannatrek’s agreement with Chemist Warehouse covers Australia and New Zealand, but can be expanded to include business in China, Ireland and other countries where Chemist Warehouse operates.
Cannatrek intends to install tablets in Chemist Warehouse stores to provide instant touchpoints for consumer inquiries about their eligibility to access medical cannabis. Through its partnership with the online doctor service Instant Consult, the company is also becoming the exclusive telemedicine partner of Chemist Warehouse for medical cannabis.
Mr. Gance was introduced to CBD products at trade shows in the United States years ago, and his wife has previously used a CBD cream to treat neck pain.
“I see this as the start of a wave of new products that could be really beneficial for consumers,” he said. “CBD grows because it works.”