RE:Why HIP at 2.20 someone may ask...Where is this information. The supply deal is with Cannimed, not Aurora.
CanniMed signs weed supply deal with Newstrike unit
2018-01-02 07:17 ET - News Release
See News Release (C-CMED) CanniMed Therapeutics Inc
Mr. Brent Zettl of CanniMed reports
CANNIMED THERAPEUTICS INC. AND UP CANNABIS INC. (WHOLLY-OWNED LICENSED PRODUCER OF NEWSTRIKE RESOURCES LTD.) ENTER DEFINITIVE SUPPLY AGREEMENT FOR MEDICAL CANNABIS
CanniMed Therapeutics Inc. and Up Cannabis Inc. (wholly owned licensed producer of Newstrike Resources Ltd.) have entered into a definitive supply agreement for a variety of medical cannabis strains. Among other things, the supply agreement will provide the raw material (whole-bud material) required to meet the surging domestic and international demand for CanniMed oils and oil derivative products, including capsules. The two companies will also collaborate on a tetrahydrocannabinol-rich, whole dried flower, medical cannabis product, demanded by patients.
Up Cannabis's supply commitment under the agreement will be filled by a combination of its existing inventory of 970 kilograms of finished cannabis product together with continuing production at its Brantford facility of the two cannabis strains commencing in early January, 2018. Under the terms of the supply agreement, Up Cannabis will produce and make available to CanniMed up to 1,500 kg of cannabis, conditional on Up Cannabis receiving an amendment to its licence to permit the sales of cannabis. The term of the agreement is 15 months, subject to renewal by the parties.
This agreement is just one example of the type of value-added synergies existing between the two companies, which, when combined, will create enormous benefit for shareholders, patients and, on the opening of the recreational adult-use market, Canadian consumers. It is anticipated over the course of this initial supply agreement, the contract could contribute roughly $15-million in revenue to CanniMed from oil sales, based on current market pricing of medical cannabis products.
"This is the first of many anticipated synergies between CanniMed and Up Cannabis, and demonstrates the accretive combined value of the two companies. With sales of CanniMed 1:20 oil surging, this supply agreement allows continued growth to meet increasing demand for our medical cannabis products domestically and internationally," said Brent Zettl, president and chief executive officer, CanniMed. "Access to consistent supply is the key differentiator in today's fast-growing medical cannabis market. Between CanniMed's expanding facilities in Saskatoon and Up Cannabis's Ontario operations we can supply both the medical and recreational market, with a projected 2019 combined production capacity of 45,000 kg."
Jay Wilgar, president and chief executive officer of Up Cannabis, stated: "This supply agreement will allow us to officially begin sales of medical cannabis products under the CanniMed brand and collaborate on the development of new products for the medical market. Together with the CanniMed acquisition, this will position our collective team as a clear market leader. We are excited to embark further on our partnership together and to leverage our growing capabilities in Brantford and Niagara for our combined interests."