07:35 AM EDT, 10/15/2018 (MT Newswires) -- Canopy Rivers (RIV.V) -- an investment company with focus on the global cannabis industry, working collaboratively with Canopy Growth (WEED.TO, CGC) -- said Monday that PharmHouse has entered into an offtake agreement to supply CSE-listed TerrAscend Canada with cannabis products from its 1.3 million square foot greenhouse facility until December 31, 2021.
The company said in a statement that the agreement represents a "de-risking milestone" for both Canopy and TerrAscend. Production from the PharmHouse facility puts TerrAscend Canada with a "sizeable" source of dried flower and trim for processing and distribution, increasing sales visibility and financial de-risking for PharmHouse, the statement said.
Bruce Linton, Chairman and Acting CEO of Canopy Rivers, and co-CEO of Canopy Growth Corporation, said: "We set out to create an ecosystem of complementary cannabis companies that can strategically support one another. This collaborative agreement between PharmHouse and TerrAscend Canada demonstrates our commitment to provide more than just growth capital to our partners."
Canopy Rivers owns 49% of the PharmHouse joint venture. Together with its joint venture partners, it is upgrading and supplementing the facility in preparation for licensing.