Canopy Growth to Acquire up to 90 Million Grams of Cannabis from Sunniva in Two-Year Wholesale Agreement
Canopy Growth Signs Significant Supply and Sales Agreement with Sunniva Medical Inc SMITHS FALLS, ON, Feb. 21, 2018 /CNW/- Canopy Growth Corporation (“Canopy Growth”) (TSX:WEED) is pleased to announce...
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Canopy Growth to Acquire up to 90 Million Grams of Cannabis from Sunniva in Two-Year Wholesale Agreement
February 21, 2018 at 10:08 am
Published by NCV Newswire
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Canopy Growth Signs Significant Supply and Sales Agreement with Sunniva Medical Inc
SMITHS FALLS, ON, Feb. 21, 2018 /CNW/- Canopy Growth Corporation (“Canopy Growth”) (TSX:WEED) is pleased to announce the signing of a definitive supply agreement with Sunniva Inc. (“Sunniva”) (CSE:SNN) (OTCQX:SNNVF). Through the terms of this two-year agreement, Canopy Growth will purchase up to 90,000 kilograms of dried cannabis from Sunniva’s wholly-owned Canadian subsidiary, Sunniva Medical Inc., a late-stage Access to Cannabis for Medical Purposes Regulations (“ACMPR”) applicant, and sister company of Natural Health Services, the sector’s largest non-Licensed Producer medical patient network with tens of thousands of active registrations in the ACMPR.
The agreement will see Sunniva grow Canopy’s existing line-up of award winning genetics as well as its own branded products, both for sale through Canopy Growth’s extensive distribution network, including Tweedmainstreet.com, the planned Tweed retail store network across the country, and through provinces in which Canopy has already established historic supply agreements. The deal secures a diverse supply of curated cannabis products for Canopy Growth and a reliable sales channel and stream of revenue for Sunniva, with appropriate risk sharing formulas in place for both parties.
We welcome Sunniva to the Canopy Growth family and look forward to collaborating with their team to provide a steady and high-quality source of cannabis products for consumers. Through provincial distribution channels, brick and mortar locations, and our online Tweed Main Street e-commerce platform we are diversifying our ability to deliver a one-stop shopping experience to consumers and provincial bodies alike. With partners like Sunniva, we are well positioned to capture market share through robust supply channels.
Mark Zekulin, President of Canopy Growth
Sunniva is developing a 700,000 sq. ft. GMP-certified greenhouse facility in British Columbia which will act as the primary production facility to meet their supply goals. The facility will produce cannabis products to supply the current medical market and the upcoming legalized recreational market in Canada.
“This agreement with Canopy Growth represents a significant milestone for us,” said Leith Pedersen, President, Sunniva Inc. “Providing a supply of high-quality cannabis products through Canopy Growth’s unparalleled retail and distribution channels, allows us to accelerate the execution of our business plan and distribution strategy. We plan to focus on building a sustainable and profitable business as we develop the Sunniva brand and by entering into strategic partnerships with the global industry leader Canopy Growth, we are doing just that.”
Here’s to Future CraftGrowth.
About Sunniva Inc.
Sunniva, through its subsidiaries, is a vertically integrated medical cannabis company operating in the world’s two largest cannabis markets – Canada and California – where we are committed to delivering safe, high-quality products and services at scale. Our business vision is to become the lowest cost, highest quality cannabis producer in the markets we serve. We will accomplish this by building large scale purpose-built cGMP greenhouses, offering better quality assurance with cannabis products free from pesticides, providing better patient and doctor access to cannabis education, and sourcing better therapeutic delivery devices.
About Sunniva Medical Inc.
SMI is a late stage ACMPR applicant in final review and is building the Sunniva Canada Campus, 700,000 square feet of purpose-built cGMP complaint greenhouse facilities to be located in British Columbia. The total Campus is expected to produce over 100,000 kg of premium medical cannabis a year and over 25,000 kg of trim used for extraction. The facility will produce pesticide free products and will convert trim to extracted products such as cannabis oil. The oil will be used for drug delivery formats such as capsules, dissolvable strips, vaporization cartridges, tinctures and creams. Sunniva anticipates to break ground in early 2018.
