AusCann Group Holdings Limited announced that is has entered into a binding term sheet with European Cannabis Corporation Ltd. to exploit mutual opportunities in the European and Australian cannabis markets. Under the term sheet, the parties will establish a joint steering committee to focus on AusCann's self- emulsifying drug delivery technology ("SEDDS"), for the development of standardised dosage form cannabis products for commercialization in Germany as well as exploring other strategic opportunities that are beneficial to AusCann and Eurocann. The parties will also collaborate on the import of EU-GMP cannabis products into Australia, ahead of recently announced changes to the Therapeutic Goods Order 93 (`TGO93').

Specifically HAPA, will exclusively manufacture and supply certain EU-GMP medicinal cannabis products to AusCann, for commercialization in Australia and New Zealand. Changes to TGO93 are expected to prevent some of the current international manufacturers, that had not previously been required to comply with TGO93 or equivalent GMP codes, from supplying the Australian market with finished cannabis products. This presents an attractive opportunity for the Companies to supply low-cost EU-GMP cannabis products into Australia.