Little Green Pharma (LGP) has served prospective partner Four 20 Pharma with a "notice of default" after a contract to supply a high-THC strain for European distribution collapsed.
LGP said the German manufacturer and importer had failed to meet the conditions required for the agreement to proceed, and the company chose not to extend the deadline or waive those conditions.
The deal had been contingent on the production of data supporting a shelf life of at least six months, the execution of a GMP quality agreement, and the granting of approvals to supply the strain into Germany.
LGP said Four 20 Pharma, acquired by Curaleaf in September, had not "satisfied its conditions precedent to secure certain approvals".
"The agreement has now ended," LGP said in a statement. "As such, the company has issued Four 20 Pharma with a notice of default and will also consider offering the high-THC SMS strain into the German market via existing channels."
LGP has been approached for additional comment.
The two companies had entered the agreement in May in what was LGP's largest single-strain offtake quantity contract at the time. Four 20 Pharma held a minimum take-or-pay commitment of A$7.5 million over 30 months.
The deal had been described as a "significant evolutionary step in LGP's supply processes and contract portfolio".
In a separate development, LGP confirmed it is in discussions with French authorities after the government extended a two-year medicinal cannabis trial by 12 months until March 2024.
LGP is among the main suppliers of product for the trial, which launched in 2021, but has not received payment for the medicine it provides.
"The company is currently in negotiations with the government in relation to their request for the company's continued participation given it is the largest supplier into the trial and has been providing products to trial participants free of charge," LGP said.
LGP has been approached for comment.
