SNNVF going large don't know if the board saw this: this is big and why this stock is going to be huge.
VANCOUVER, Feb. 21, 2018 /CNW/ - Canopy Growth Corporation ("Canopy Growth") (TSX:WEED) and Sunniva Inc. ("Sunniva") (CSE:SNN) (OTCQX:SNNVF), a North American provider of medical cannabis products and services, are pleased to announce they have signed a definitive supply agreement (the "Agreement") whereby Sunniva, through its wholly-owned subsidiary in Canada, Sunniva Medical Inc. ("SMI"), has committed to sell Canopy 45,000 kilograms of premium quality cannabis annually over an initial two year period commencing in calendar Q1 2019.
Under the terms of the Agreement, Canopy Growth will purchase up to 45,000 kilograms of dried cannabis annually. Canopy Growth and Sunniva will share in the revenues as product is sold through Canopy Growth's distribution network including its online marketplace, Tweed Main Street and via provincial distribution channels. The revenue share will be based on the strain, sales channel and other relevant factors. The Agreement is subject to SMI receiving its licence from Health Canada, which is currently in the final review stage, and completing the Sunniva Canada Campus- a 700,000 square foot GMP greenhouse facility in British Columbia, Canada.
"This Agreement represents a significant milestone for Sunniva," said Leith Pedersen, President, Sunniva. "Providing the supply of premium cannabis products under this Agreement allows Sunniva to accelerate the execution of our business plan and distribution strategy."
"Our focus in the near-term is to build a sustainable and profitable business as we develop the Sunniva brand. We expect to accomplish this by becoming a low-cost, high-quality producer of medicinal cannabis via large-scale purpose-built production facilities which are compliant with good manufacturing practices. By establishing a strategic partnership with Canopy Growth and allocating a significant portion of our production, we de-risk our business model. This Agreement evidences the significant potential of our business strategy."
Mark Zekulin, President of Canopy Growth commented, "We are very excited to announce this Agreement with Sunniva and welcome such a successful and impressive partner to the CraftGrow line. This Agreement further establishes our commitment to providing high-quality cannabis products to Canadian consumers. We look forward to working with Sunniva and their management team and anticipate a successful relationship that will be beneficial for both companies."
