GREY:SNNVF - Post by User
Comment by
GOTMONEYon Jun 01, 2018 5:17pm
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Post# 28113785
RE:RE:RE:RE:RE:RE:RE:RE:Just one analyst asking questions
RE:RE:RE:RE:RE:RE:RE:RE:Just one analyst asking questionsThe agreement is easily extendable beyond two years. It's a common misconception that this is a two-year agreement - the agreement is initially for two years, but can (and will, I think) be renewed if both sides agree to it in writing within 90 days of the end of the initial two year period. More importantly, it's not simply a wholesale supply agreement as Canopy will market Sunniva branded product via its own distribution channels. This is a partnership. Is there a chance the parties will choose not to extend this partnership beyond the two year period? Maybe. But Sunniva will still retain its cost and quality advantages and will find other distribution channels/partners to replace Canopy if necessary.