The two parties signed a Memorandum of Understanding (MoU) on the issue during the Digital X, Europe’s cross-sectoral digitalisation initiative. T-Systems will offer its business customers a “Blockchain Ecosystem” from 2020.

Malta Enterprise and T-Systems expressed their commitment to making the benefits of the compliant and rapidly deployable blockchain ecosystem available to Malta-registered companies as soon as possible. The two entities added that they are convinced that blockchain networks provide higher security and control than any other technology.

In November 2018, Malta became the first EU member to provide a formal legal framework for blockchain and distributed ledger technology (DLT) solutions. Ever since, Malta has often been referred to as the “Blockchain Island”.

“We are delighted to offer this unique platform to Blockchain developers,” said Katharyn White, Chief Marketing Officer of T-Systems, “It will increase the success of Blockchain projects and accelerate the impact of Blockchain solutions on the market,” she added.

Kurt Farrugia, CEO of Malta Enterprise, also welcomes the cooperation: “This collaboration with T-Systems will give a further competitive advantage for Malta over other jurisdictions while adding more value to the already established Maltese Blockchain ecosystem,” said Malta Enterprise CEO Kurt Farrugia. “Companies using T-System’s Blockchain Ecosystem services will have a certification for their project by the Malta Digital Innovation Authority (MDIA). The relationship with T-Systems will continue to build Malta’s reputation as a solid Blockchain jurisdiction,” he added.

The planned collaboration includes:

• Provision of an enterprise blockchain platform as part of the Malta Innovation Hub, which will support the Ethereum, Hyperledger, and Corda DLT platforms;
• Provision of a validator service, allowing Mata-registered companies to rapidly deploy validator nodes on some of the largest and most significant proof-of-stake blockchains in production;
• Support for the comprehensive solution audits recently announced by the Malta Digital Innovation Authority;
• Access to T-Systems’ security solutions;
• Joint marketing and training activities, including seminars in key European cities to provide a rapid adoption path for companies wishing to launch blockchain projects quickly, securely, and in full compliance.

The post Malta Enterprise teams up with T-Systems on blockchain ecosystem first appeared on The Malta Business Weekly.

“Such initiatives work to further develop Malta’s research and innovation ecosystem — which is one of the agency’s primary aims, as a collaboration between industry, the public sector and academia remains critical to sustaining both economic and social development,” the Malta Enterprise said.

During the event, Malta Enterprise CEO Kurt Farrugia stressed the importance of strengthening strategic cooperation by stimulating industries and motivating academics to collaborate together.

“The importance of such collaboration is crucial to ensure that we edge our innovation element even further — especially given the current high-paced growth and dynamic investment climate in Malta. This is key to sustain and drive to new heights, our economic and social growth,” according to the Malta Enterprise.

Malta Enterprise says it will keep its commitment to holding similar initiatives which the organisation hopes will result in forging closer ties between academia, industry and the government. “The role of the government will be that of a catalyst to facilitate closer interaction between academia and industry,” Malta Enterprise says in the press statement.

Dr Christopher Haley, Head of New Technology & Startup Research at Nesta, chaired the Academia & Industry roundtable. Senior representatives from the government, the University of Malta, the Malta College of Arts Science and Technology (MCAST), Chamber of Commerce and various industry players gathered together to explore further avenues how to bridge the gaps between academia and industry. Present for the meeting were the President of the Chamber of Commerce David Xuereb, representatives from the Ministry for the Economy, Investment and Small Businesses, the Ministry for European Affairs and Equality, the University of Malta, MCAST, MCST, National Skills Council together with representatives from Trelleborg, Abertax Technologies and Raesch Quarz Ltd.

The post Malta Enterprise brings together academia and industry reps first appeared on The Malta Business Weekly.

The app was designed after receiving feedback from the public and realising that businesses’ reported difficulties in making sense of the overwhelming and disjointed amount of information from many different sources on support and incentives available to them.

The app aims to be a practical and streamlined platform that can help local businesses rifle through the available collection of schemes and other incentives available from all government organisations.

Support measures available through the app are grouped based on the type of funding mechanism and are further categorised by the sectors they target.

Each page relating to a particular incentive provides basic information about the scheme, with direct links to more detailed information along with contact details pertaining to the entity managing each initiative.

The mobile app entitled Enterprise Incentives is available on Google Play Store and Apple’s App Store.

Malta SME Week kicks off with StartUp Café

The Malta SME Week is also taking place now. Mr Cardona’s launch of the week-long event series, as well as the app, was announced at the second edition of Malta Enterprise’s StartUp Café. During this event, Malta Enterprise said it has supported startups with €2m since 2015.

The Malta SME Week is part of the European Commission’s EU-wide SME Week events, which aim to generate public awareness among people who wish to start a business or are already in business and wish to grow their activities. The event series lasts for six weeks. This year’s edition is featuring a wide range of events targeting different audiences.

The SME Week in Malta ties with the economy ministry’s efforts to promote entrepreneurship as a career option while providing information on national and EU entities assistance to micro, small and medium-sized businesses and also giving recognition to entrepreneurs for their contribution to Malta’s welfare, jobs, innovation, and competitiveness, according to the DOI press release.

“October has become synonymous for the local business community with events that bring us and the relevant stakeholders all together, where we update each other on local and European trends. It’s also an opportunity for us to have a better idea of what challenges and realities our businesses are facing,” said economy minister Mr Cardona.

The StartUp Café brought together some 120 young enterprises looking to start their own business. During the event, professionals and academics shared their experiences in order to help participants to develop their entrepreneurial skills. In addition, participants participated in workshops and networking sessions with the panellists.

The post Mobile app aims to assist businesses in Malta first appeared on The Malta Business Weekly.

The Malta Enterprise recently held the second edition of Startup Café; an event providing a space for newly established startups and the youth to meet and network with mentors from different fields and backgrounds.

During the event, seasoned entrepreneurs shared their experiences to help participants further develop their business enterprising skills. The event offers a venue to discuss ideas, pose questions or simply catch up with the current and emerging trends and business realities.

Startup Café is organised by Malta Enterprise with the support of the Ministry for the Economy, Investment and Small Businesses and Young Enterprise Malta Foundation (JAYE Malta), within the framework of the Malta SME Week.

Kurt Farrugia, CEO of Malta Enterprise has promised the startup community that the ME will continue working to help those interested in setting up their own business.

The post Malta Enterprise supports startups with €2m since 2015 first appeared on The Malta Business Weekly.

In 2018, the Maltese government was one of the first countries in Europe to have passed the legislation for the production of medical cannabis. Since then, Malta Enterprise, the economic development agency of the island nation, says that it has signed over ten letters of intent with companies who would like to set up a manufacturing base in Malta and start exporting medical cannabis products from the island. Malta Enterprise was unable to share the names of the companies it had signed letters of intent with on Business Malta’s enquiry, as the Business Promotion Act and Malta Enterprise Act stipulate that such information cannot be shared with third parties.

Malta Enterprise is an avid promoter of the island, globally, and offers instant support for companies looking this way. “Being in continuous contact with our companies gives us the opportunity to listen and act fast on suggestions put forward by the operators within the sector,” Malta Enterprise tells BM. “From the already established pharmaceutical and life sciences sector and the attractiveness of medical cannabis industry in Malta, it is clear that Malta is seen by many companies as a potential central hub from where to supply Europe and elsewhere with very high-quality pharmaceutical products.”

The island nation’s efforts in the area are visible globally. “Malta has a long history of claiming and supporting nascent industries and cannabis is clearly no exception,” points out David Attwood, Head of Consultancy at Prohibition Partners — a consultancy firm for independent data, intelligence and strategy for the international cannabis market. “Market forecasts are always difficult to predict but Malta’s pro-business framework and liberal legislation definitely helps position the country to benefit from the emerging cannabis market,” Mr Attwood tells BM.

With its 316 sqkm and a population of around 460,000, Malta’s medical cannabis market is rather limited in size, hence companies are looking to set up in Malta to primarily fuel their proposed export operations from the island, into neighbouring markets.

“Liberal cannabis policy and pro-business frameworks are helping position Malta as a market of interest for investors, operators and importers.”

“Liberal cannabis policy and pro-business frameworks are helping position Malta as a market of interest for investors, operators and importers,” Mr Attwood says. “Despite being a domestic small market, Malta is able to offer expertise in pharmaceuticals, cultivation licences and export potential to the rest of Europe, which is a lucrative opportunity for the international cannabis producers,” adds Mr Attwood.

“After the ‘Production of Cannabis for Medicinal Use Act’ was introduced, Malta received an influx of investment from foreign firms hoping to gain a foothold in the European market. Certainly, the big Canadian firms have shown an interest, hoping to gain access to the European medical market,” Mr Attwood says.

Setting up shop

Some companies have already come to light about their intentions related to establishing an operations arm in Malta. MGC Pharmaceuticals, who will be opening their pharmaceutical division in Ħal Far, for instance, told Business Malta that they were approached by Malta Enterprise to come to the island.

“The first thing that directed our attention to the island was an email from Malta Enterprise. They did an excellent job of analysing the market and reaching out to mature, responsible companies in order to build the industry here correctly,” Nativ Segev, Founder and Director of MGC Pharmaceuticals, tells BM. “Once we made contact, we started looking at the island more closely, from several perspectives: geography, operating conditions, financial implications — just to mention a few —, and we found nothing wanting in comparison to other European countries. At the same time, we have experienced a very welcoming local mechanism for assisting us in various ways,” he adds.

Other companies such as Mera Cannabis and MPX International have been attracted to Malta due to its strategic geographical location and already existing pharmaceutical and nutraceutical manufacturing sector.

“Malta has had an established licencing process around cannabis production,” W. Scott Boyes, chairman president and CEO of MPX International (MPXI) tells Business Malta. “When we made our move into Malta in 2018, Germany and Denmark were the only two other countries with this type of regulatory infrastructure in place. The transparency and clarity that this type of structure has provided us with the confidence to move forward and now we are creating another first-mover advantage for MPXI and will be one of the first companies to be producing, selling and exporting medical cannabis products in and from Malta to the rest of Europe,” Mr Boyes adds.

“The Maltese government is determined to play a pivotal role in the growth and development of the medical cannabis market in Europe.”

“The Maltese government is determined to play a pivotal role in the growth and development of the medical cannabis market in Europe. These products require additional processing and manufacturing, so having these capabilities within the European Union will allow for more efficient manufacturing and distribution,” Emily Ondercin-Bourne, Marketing Manager of Mera Cannabis, tells BM. Mera Cannabis (formerly known as Avana) says it will be focussing on more patient-friendly intake methods, such as capsule, topicals and sublingual products. This will require additional processing and manufacturing, making Malta the best choice for the European distribution of such products, Ms Ondercin-Bourne adds.

Malta Enterprise, furthermore, aspires to make Malta a research centre for medical cannabis, focussing on product development, new therapeutic strains, new product formulations, and clinical research, as Business Malta has learnt.

MGC Pharmaceuticals aims to focus on its clinical products and believes that in the coming years, pharmaceutical solutions will change the paradigms of global treatment. MGC intends to put Malta at the forefront of innovation and research globally, according to Mr Segev. “MGC Pharma’s facility will be one of the first commercial EU-GMP grade production and research facilities in the country within the medical cannabis sector,” the MGC founder adds.

“The facility will expedite the development of expertise for cannabinoid-derived medicines and research in Malta with subsequent products to be delivered into the European Union and global markets, which because of Malta’s location, trade agreements, and low corporate taxation, become easier for MGC to access,” says Mr Segev.

Similarly, MPX International aims to change attitudes and perceptions toward the benefits of cannabidiol (CBD) — an ingredient in the focus of a new area of cannabis research, and becoming trending in the natural products industry — as a wellness product. “By creating first-mover advantages in markets such as the European Union through initiatives like our Malta operations, we are positioning the company and its brands to be some of the first contacts with medical cannabis products that many Europeans may have,” Mr Boyes tells BM. “We believe this strategy will create strong brand awareness and loyalty, helping us capture market share and helping drive the company’s success.”

MPX International has also partnered with Bortex who will oversee their day-to-day operations and provide on-the-ground expertise once MPXI’s manufacturing facility in Valletta is operational. The approximately 110 sqm facility was previously owned by a Maltese pharmaceutical company specialising in GMP packaging and distribution.

“With a combined population of more than 740 million, Europe represents an extremely large and relatively untapped market.”

“We expect to be producing more than 90 different product SKUs [stock-keeping units] for export to legal medical markets across Europe. With a combined population of more than 740 million, Europe represents an extremely large and relatively untapped market and we are working to become one of the first go-to brands there,” continues Mr Boyes. MPX International will be producing GMP-certified finished medical cannabis products under the Salus Biopharma brand, MPX International’s pharma-grade medical cannabis company.

Mera Cannabis will use the Maltese facility to supply the broader EU medical market and leverage CannaWay Clinic, its domestic network of medical clinics, to establish access to medical cannabis in countries that do not have the medical expertise or infrastructure. “The European production facility will process imported crude cannabis oil into medical products such as tinctures, capsules, topicals or strips,” Ms Ondercin-Bourne tells Business Malta.

Supplying Europe

“Malta — having been one of the first to regulate — will be able to become a key player in supplying the European Union with very high-grade pharma product produced under GMP conditions through the regulator of the production of medical cannabis products in Malta; the Malta Medicines Authority,” Malta Enterprise says. The Malta Medicines Authority is one of the first eight inspectorates outside the United States to be recognised by the US Food and Drug Administration (FDA).

Mera Cannabis expects the European market to evolve following a similar trajectory to the Canadian medical market. “Our experience in the medical market in Canada through CannaWay Clinic has taught us how to work with physicians and what is required to adopt medical cannabis treatment plans as part of a larger approach to healthcare. We plan to replicate this approach in countries where governments are supportive of medical cannabis but need help providing access to patients in a responsible and physician-driven way,” says Ms Ondercin-Bourne.

Furthermore, MPX International also suspects that the European market will continue to open up much like that in the United States or Canada. “We will continue to see countries explore, vote on and adopt both medical and recreational legislation in some form. Already, CBD is legal in 27 European countries and that number will likely rise. With the normalisation of cannabis and the social justice and economic benefits that are associated with its legalisation, that is how we see things continuing to evolve,” Mr Boyes tells BM. “And we also believe that MPXI is uniquely positioned to take advantage of this fragmented market; we have significant experience building a successful enterprise over multiple jurisdictions with our recently divested US business and we are going to do it again in Europe,” he adds.

Mera Cannabis also believes that as research continues to grow and as more medical professionals approve of medical cannabis, insurance companies will broaden their coverage to facilitate the use of such solutions.

Nevertheless, Prohibition Partners tells Business Malta that Europe will most likely not adopt from the North American dispensary model, as citizens and medical professionals expect a highly-standardised and regulated pharmaceutical-style product, supplied by specialist distributors.

“The European market will diversify and specialise over the next decade but Malta could well become an important hub for import and processing if it manages to establish a clear process and plan for exports to the rest of the European Union,” adds Mr Attwood.

Tight competition on horizon

Although Malta is an early adopter in terms of medical cannabis, other countries are also courting the vertical and therefore, competition might be high. “Germany, Denmark, Greece, Portugal and Italy have all discussed the domestic cultivation with a view to supplying the European market, while Luxembourg has promised to introduce a regulated adult-use market before 2023, hence they could all be competitors to Malta,” Mr Attwood tells Business Malta.

“Keep your eyes on Germany as a huge market, Portugal and Spain are beginning to get their act together […] but they will have a lot of work to catch up with countries like Malta .”

“Keep your eyes on Germany as a huge market, Portugal and Spain are beginning to get their act together, so in the not too far-off future all the major EU countries will have a stake in growing this industry; but they will have a lot of work to catch up with countries like Malta who have been ahead of the curve,” Mr Segev of MGC tells Business Malta.

To date, Malta Enterprise has approved 20 projects within the medical cannabis sector. Once operational, it is estimated that these projects will create over 700 new full-time jobs and supplement Malta’s exports by over €900m by 2022, Malta Enterprise tells Business Malta.

MPX International will take onboard staff who previously worked with Alphafarma and are certified in various quality control assurance standards required for the facility to acquire its final GMP manufacturing authorisations. The company expects to employ an additional 30 full-time staff members.

Mera Cannabis expects to hire approximately 20 employees and aim to grow their corporate team and their team at CannaWay Clinic.

MGC Pharmaceuticals forecasts hiring about 30 employees in its initial period and plans to grow and expand as its global distribution network grows.

Eyeing Africa?

Due to Malta’s geographical vicinity not only to Europe but also Africa, the highly-logical question of whether medical cannabis firms would eye supplying the mother continent with their products also arises.

MPX International intends to supply the African market as long as medical cannabis is prescribed correctly and is regulated under a reasonable programme. “Our mission at MPXI is helping patients in need have access to safe and effective cannabis medicine,” says Mr Boyes. “We will supply any country that has a responsible and legal programme in place, and doctors who are properly educated on prescribing the products. We have a JV in South Africa which is currently awaiting a licence from SAHPRA [South African Health Products Regulatory Authority] to produce medicinal cannabis, so we already have a presence on the continent.”

Furthermore, MGC looks to expand wherever medical cannabis is required. “We look at the global market and intend to have our products everywhere they are needed,” says Mr Segev. “MGC has a global research and development agenda that spans multiple continents and is always seeking interesting relationships and geographies to develop. As noted earlier, this is a global opportunity which Malta has been wise to be prescient about, but the rest of the globe is now waking up and the interest is everywhere,” Mr Segev says.

Nevertheless, Ms Ondercin-Bourne of Mera applies more caution when making a prognosis about the African market. “At this point in time, present healthcare systems are extremely limited and often rely on charities or other donors to local healthcare industries. As we continue to refine our approach to expansion, particularly with our clinic network, we will always have countries who wish to obtain better access to medical cannabis on our radar,” she says.

Alexandra Curley, Head of Insights at Prohibition Partners, earlier told Business Malta that Malta is most likely to supply Europe, and not Africa. “Despite its geographical proximity to Africa, I think it is unlikely that Africa will become an export market for Malta. Cannabis, both recreationally and medically, is still illegal in the vast majority of Africa and the three nations with legal medical frameworks (Lesotho, Zimbabwe and South Africa) have plans to develop domestic markets,” Ms Curley said.

The post Medical cannabis companies could raid Malta to fuel European expansion first appeared on The Malta Business Weekly.

On the one hand, the first edition of Startup Express will be held on 10 October, which is designed for small and medium-sized enterprises (SMEs) for supporting new companies enhancing their competence for pitching, presenting projects to business angels and investors, and crowdfunding. 

All the participants will be able to meet Christoph Sollich — aka The Pitch Doctor —, crowdfunding pioneers from Seedrs, industry experts, and funded startups, as the press release says. 

On the other hand, the second edition of Startup Café will be held on 12 October, focussing on young entrepreneurs. 

Moreover, Startup Café will comprise of parallel workshops on alternative funding, women’s entrepreneurship, commercialisation, internationalisation, among many others. 

In addition, this event represents a possibility to learn from seasoned entrepreneurs, discuss ideas, pose questions or catch up on both the current and emerging trends and business realities. 

The post Malta Enterprise to hold two startup events in October first appeared on The Malta Business Weekly.

The visit was held within the framework of the so-called RELOS3 project. It included meetings with Tartu’s Science Park; Digital Innovation Hub; Wood Processing and Furniture Manufacturing Centre of Competence; Centre for Entrepreneurship and Innovation; Biotechnology Park; the Estonian Genome Centre and other Estonian entities and stakeholders.

Furthermore, the involvement of SMEs in Smart Specialisation was considered to be an important factor in the region’s success, as well as the importance of the University of Tartu connecting the latest ICT-technology to traditional manufacturing processes, as part of the city’s strong drive towards Industry 4.0, the press statement says.

Malta Enterprise represented one of the project partners and will set out to complete a Local Action Plan that embodies three years of intensive learning and which will be presented at a Working Conference in Groningen, the Netherlands, in November this year.

The Action Plan will include recommendations for local policy-makers, in order to improve Malta’s deployment of research and innovation strategies for smart specialisation (RIS3). It will be presented by the end of this year.

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The summit provided insight into various initiatives and projects undertaken by Maltese research and businesses, as well as the innovation support available through Malta Enterprise and the Malta Council for Science and Technology (MCAST). It also touched on R&D and innovation-related progress at the Malta Life Sciences Park, Trade Malta, and the University of Malta, according to the press statement

The representatives from Malta Enterprise and MCAST took part in the Innovation Funders meeting, which brought together top-level attendees involved in innovation support from over 30 countries, the EUREKA network and the European Commission, as the press release says.

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Euler Hermes has been commissioned to conduct a related study. The kick-off meeting for the study was held at the Malta Enterprise headquarters, where a number of economic presentations and meetings with business representatives and stakeholders took place, according to the press statement by Malta Enterprise.

Malta Enterprise is supported by the European Commission, through the SRSP (Structural Reforms Support Programme), to examine options for developing an Export Credit facility for Maltese businesses proactively engaged in exporting goods and services.

The post Malta Enterprise hosts kick-off meeting of study for supporting local exporters first appeared on The Malta Business Weekly.

Alpha Farma is transferring the lease for the “GMP-ready” facility located in capital Valletta, as well as the GMP certification to Alphafarma, newly-created subsidiary of the vendor, in exchange for the payment of €1.5m in cash and the issuance of 1,000,000 common shares and 300,000 common share purchase warrants to acquire additional MPXI shares at an exercise price of $0.63 per MPXI Share for a period of five years, according to the press statement.

Select staff from the current tenant of the facility will remain with MPXI Malta, the companies say in the press statement. The availability of such qualified personnel, the companies believe, will also shorten and facilitate the GMP certification process and allow MPXI to more quickly secure final license approval and commence operations.

MPXI International is expected to invest approximately €3m for refurbishing the facility, extraction, processing and packaging equipment and working capital.

“This is an important step in our European expansion plan. Malta not only provides a strategic gateway to the emerging EU markets but also upholds high pharmaceutical standards and a strong regulatory framework. We look forward to combining our cannabis expertise and intellectual property with some of Europe’s leading pharmaceutical talent,” said Daniel Fryer, MPXI’s Head of European Development.

MPXI International will issue to Green Goblin Ventures Limited 423,142 MPXI shares as consideration for the preparation of the application for the licence and 114,511 MPXI shares as consideration for identifying and facilitating the acquisition of Alphafarma and the transfer of the GMP certification.

As part of the partnership agreement whereby Bortex will provide oversight of and support to MPXI’s Maltese operations and as consideration for assistance with setting up the local manufacturing facility in the newly acquired Alphafarma site, MPXI International shall issue to Bortex 637,238 MPXI shares.

First step for operations in Malta

Under the LOI signed with the Malta Enterprise, the Maltese company would be able to receive a licence to import, extract, produce finished products and distribute cannabis and cannabis derivatives for medicinal use in Malta and export to certain international markets, such as the European Union.

Receipt of the LOI is the first step of the application process in the country, which many believe is strategically located in the Mediterranean Sea and could soon become a key commercial entry point for the European market.

The formal licence is issued by the Malta Medicines Authority upon completion and EU-GMP certification of a cannabis processing facility. Upon receipt of the formal licence, MPXI will produce EU-GMP quality cannabis oils and cannabis derivative products and pursue regulated medical cannabis distribution opportunities in the European Union through its wholly-owned medical brand, Salus BioPharma Corporation.

“Typically, Malta Enterprise allocates a property to the licensee which must then be subject to planning and design approval and build-out. It can then take up to eighteen months to finalise and commence production,” said W. Scott Boyes, Chairman, President and Chief Executive Officer of MPXI.

“We have been extremely fortunate to have been able to identify a 1,200 sqm ‘GMP-ready’ facility in Valletta which can quickly be adapted and certified for EU-GMP cannabis production. Planning is already underway to upgrade and equip the premises with operations potentially commencing later this year. We believe this will allow MPX International to be among the earliest licensed cannabis producers to move cannabinoid-based medicines into the European Union from Malta,” the CEO added.

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