AgraFlora Subsidiary Farmako Receives Special License Permitting the Sale of Irradiated Medical Cannabis

Vancouver British Columbia / February 18th 2020 – AgraFlora Organics International Inc. (“AgraFlora” or the “Company”) (CSE: AGRA) (Frankfurt: PU31) (OTCPK: AGFAF) a growth oriented and diversified international cannabis company is pleased to announce that the Company’s wholly owned subsidiary Farmako GmbH (“Farmako”) has secured a special authorization from the German Federal Institute for Drugs and Medical Devices (“BfArM”) for the distribution of medical cannabis flowers that have undergone an ionizing radiation treatment (the “AMRadV License”). This is a critical milestone for Farmako as the German medical cannabis wholesaler will now be able to import for sale in Germany medical cannabis that is EU-GMP certified but which has been subject to sterilization by irradiation. To date the German medical cannabis marketplace has been undersupplied due to a number of factors including the general scarcity of EU-GMP certified cannabis flowers available in the international market. The supply shortage is made worse because many EU-GMP exporting jurisdictions such as Canada commonly require the use of microbial sterilization prior to sale. Without the AMRadV License such sterilized cannabis could not be made available for sale in Germany’s medical cannabis program.

“By securing the AMRadV license Farmako can now solve one of the biggest bottlenecks affecting growth: access to EU-GMP certified medical cannabis flowers” said Katrin Eckmans Chief Executive Officer of Farmako. “We are now one of only a small group of companies that may import and distributed sterilized cannabis flowers in Germany. This is a significant advantage for Farmako vs its peers that do not hold the AMRadV License due to sterilized EU-GMP cannabis flower being more available for import than EU-GMP cannabis flower that has not been sterilized. With the license in hand we are now well positioned to access increased international supply and take advantage of the massive growth of demand for medical cannabis in Germany.”

Being one of a limited group of German companies with the AMRadV License and a growing network of 19800 German pharmacies servicing over 100000 patients Farmako is well positioned for success in the German market. Germany’s medical cannabis market is estimated to be Europe’s largest medical cannabis markets and has the potential to develop into one of the world’s largest marketplaces for medical cannabis in the coming years.[1] Furthermore expanded access to medical cannabis supply from a variety of source destinations as permitted by the AMRadV License will allow Farmako to continue to position itself as a competitive pharmaceutical wholesaler; ensuring sustainable access to medical cannabis products for patients within the German marketplace.

Management believes Farmako has achieved a market share of approximately 8 per-cent of the German medical market. But with the patient population growing 12400 per-cent since 2017 and the restrictions on sterilized cannabis flowers Farmako has been unable to capture additional growth. With the additional license in hand Farmako intends on rapidly expanding its international vendor network to increase its revenues and EBIT earned in the German market in 2020.

About Farmako GmbH

Farmako is one of Europe’s leading distributors of medical cannabis with active revenue-generating operations in Germany Europe’s largest medicinal cannabis market. In 2020 Farmako expects to be one of the first fully licensed distributors of medical cannabis in the United Kingdom. The Company is also pursuing medical cannabis distribution operations in Luxembourg and Denmark two of Europe’s fastest emerging medical cannabis markets. For more information please visit: https://www.farmako-global.com/.

[1] Published by the data and intelligence firm Prohibition Partners the Germany Cannabis Report.

About AgraFlora Organics International Inc.

AgraFlora Organics International Inc. is a leading cannabis company building shareholder value through the development of revenue generating operating assets in the global cannabis industry. AgraFlora is focused primarily on the Canadian cannabis industry; the world’s most advanced and regulated legal cannabis market. Flagship Canadian assets include: Edibles & Infusions a fully automated manufacturing facility in Winnipeg MB for white-label and consumer branded edible production; Propagation Services Canada a large-scale commercial greenhouse in Delta BC focused on reshaping the Canadian flower market with high-potency low cost cannabis flower and AAA Heidelberg a craft focused cannabis producer in London ON. In addition AgraFlora’s wholly owned subsidiary Farmako GmbH is scaling towards its goal of being Europe’s leading distributor of medical cannabis. Farmako currently has active distribution operations in Germany and expects to commence active operations in the United Kingdom in 2020. For more information please visit: https://agraflora.com/.

ON BEHALF OF THE BOARD OF DIRECTORS

Brandon Boddy
Chairman & CEO
T: (604) 682-2928
For additional information:

AgraFlora Organics International Inc.

Tim McNulty
E: ir@agraflora.com
T: (800) 783-6056
For French inquiries:

Remy Scalabrini Maricom Inc.
E: rs@maricom.ca
T: (888) 585-MARI

NT4