(Reuters) - Canada’s Aurora Cannabis Inc said on Thursday its German unit Pedanios won a contract to supply medical marijuana to the Italian market.

Aurora, Canada’s second largest pot producer, will export medical cannabis into Germany through Pedanios, which will supply the Italian market through the Italian Ministry of Defence.

Cannabis-based medicines are legal in several European Union countries including Italy as a treatment for chronic pain, post-traumatic stress disorder, side effects from cancer therapy and other ailments.

While the Italian Ministry of Defence currently produces medical cannabis for the Italian market, a sharp rise in demand led the government to seek external parties for more supply, Aurora said.

The company said earlier this month it would partner with Danish tomato and pepper producer Alfred Pedersen & Son to produce and sell cannabis in Europe.

Its expansion plans come as Canada prepares to legalize the sale of recreational marijuana by July, becoming only the second country to do so after Uruguay.