Canopy Growth Corporation, Canada’s largest producer of  medical marijuana, announced Monday it will acquire Germany-based MedCann, a cannabis distributor, importer and manufacturer.

"Germany has begun a process of enabling medical access to cannabis and through a policy that recognized Canopy as the first legal supply source from North America," Bruce Linton, chairman and CEO of Canopy Growth, said in a release. "This acquisition establishes a distinct and purely medicinal corporate entity that helps us today but also positions us for domestic medicinal production inside Germany if the regulatory environment shifts."

MedCann is known for placing strains of Canopy Growth’s brand Tweed in German pharmacies. Germany has allowed patient access to medical marijuana since 2005, although there is currently no domestic cannabis production, with imports coming from Canada and Holland.

"Germans need access to high-quality cannabis and Tweed's products are proving to be up to the very strict standards set by the federal government," Pierre Debs, founder of Medcann, said in a release. "Working together as one team will allow Canopy Growth through Tweed, Tweed Farms, and future production sites to supply the unmet demand that has been building over the past decade."

In its latest earnings release earlier this month, Canopy (CGC.TO) reported its fiscal second-quarter revenue reached $8.5 million, marking a 245 per cent increase over the same period last year.

The company’s acquisition of MedCann requires approval from the Toronto Stock Exchange.