Wayland Group Wins Coveted German Cultivation License

Wayland Group ( is one of three Canadian producers to gain a coveted license to cultivate and distribute medicinal cannabis in Germany.

The German Federal Institute for Drugs and Medical Devices selected Aurora, Aphria, and Demecan GmbH as its three winners in the public tender. Demecan is a joint venture Wayland set up with German partners to make inroads into Europe’s largest economy.

The German government covers marijuana prescriptions for more than half of its people, so it could turn into a very lucrative market.

Since Germany’s Cannabis as Medicines Act was enacted in March 2017, the country has solely relied on imports to meet prescriptions for around 40,000 active patients. This will be its first ever legal domestic cultivation scheme.

Wayland has always put Germany at the heart of its strategy for international growth due to its economic might, its progressive attitude to cannabis, and its large number of patients. The government covers marijuana prescriptions for more than half of its people, so it could turn into a very lucrative market.

“This is a watershed moment for our operations in Germany as it validates the early entry by our company into that market,” said Wayland chairman Paul Pathak. “I congratulate Ben [Ward, Wayland chief executive] and his team on the ground in Germany and our partner Demecan and thank them for their hard work. We hope and expect to see similar successes in other international markets where Wayland has made similar early entries.”

A Boost for ICC

In January, Wayland agreed to sell 49.9% of its international business to International Cannabis Corp. for US$126 million in stock. Wayland received 300 million shares of ICC at a deemed price of $0.43 in a deal that valued Wayland’s international business at $258 million.

The two firms agreed to launch an international subsidiary, jointly owned by both companies. ICC chief executive Eugene Beukmann called it a “watershed acquisition” for his company at the time, and he was understandably delighted by the news that Wayland had won the tender in Germany.

“Wayland’s first mover advantage coupled with their surgical execution and best-in-class operations within the German cannabis market are further validated by this recent announcement,” he said.

He praised Wayland’s “corporate foresight” in identifying the potential of the German market and talked up its progressive regulations and geometrically growing patient population.

How the Lots Got Divided

Wayland’s share price increased 14.7% to C$1.09 on Friday, March 5, as a result of the news. ICC received a similar boost and its stock increased to US$0.36, while Aurora and Aphria both saw significant gains as a result of the German Federal Institute for Drugs and Medical Devices’ decision.

Aurora and Aphria are each taking five of the 13 available lots, with three left for Demecan. The tender saw no fewer than 79 different companies competing.

The provisional decision is subject to a mandatory 10-day standstill period for public contracts, which allows the 76 unsuccessful bidders to challenge the decision before the final contract is signed.

The selection process focused on each company’s submission on how it planned to produce, deliver, and price medicinal cannabis for German patients. The cannabis produced by Wayland, Aphria, and Aurora will be sold to the German government and supplied to wholesalers for distribution to pharmacies.

Each lot is for 200 kilos per year over a four-year period, meaning the total tender is for 10,400 kilos. That seems relatively paltry when you consider the huge amounts being produced in Canada, but German activists see it as a welcome development after many delays to a domestic cultivation scheme.

The growers should have the first crop ready for patient consumption by the end of 2020.

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Martin Green
Martin Green is an experienced journalist with a strong focus on the cannabis, alcohol, and gambling industries. He is particularly interested in the political issues affecting the global marijuana trade, and he has a keen focus on regulation changes and legal topics. He holds a BA English Literature, MA Creative Writing and a National Qualification in Journalism diploma. He has worked in journalism since 2009 and written for a broad range of newspapers, business titles and magazines, including The Sun, The Metro, The Journal, Livestrong, Drinks Retailing News, Harpers, Sportsbook Review, Vital Football, Essex Live and Surrey Live. Address: 682 Indian Road, Toronto, Ontario, M6P 2C9. Phone: 416-721-8257.
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