Quebec Finalizes Cannabis Supply Agreements with 6 Producers

This morning, six Canadian licensed producer announced the finalization of supply agreements made in February with Société des alcools du Québec (SAQ), including Aphria (TSX: APH) (OTC: APHQF), Aurora Cannabis (TSX: ACB) (OTC: ACBFF), Canopy Growth,(TSX: WEED) (OTC: TWMJF),  Hydropothecary (TSXV: THCX) (OTC: HYYDF), MedReleaf (TSX: LEAF) (OTC: MEDFF) and Tilray.

Aphria has agreed to supply 12 million grams per year from its Ontario facility over three years. Aurora Cannabis will provide a minimum of 5 million grams in the first year of a three-year agreement.

Canopy Growth will supply Quebec with 12 million grams per year for three years. The company operates indoor facility Vert Cannabis in Saint Lucien and is building out the 700,000 sq. ft. Vert Mirabel greenhouse in the province as well. Hydropothecary, which cultivates exclusively in Quebec, won the biggest mandate, 204 million grams over five years, including 20 million grams in the first year, 35 million in the second, 45 million in the third and 104 million in the final two years.

MedReleaf, which cultivates in Ontario, will provide SAQ with 8 million grams per year over the three-year term. Tilray’s High Park unit will supply Quebec with 5 million grams per year over the three-year period.

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Exclusive article by Alan Brochstein, CFA
Alan Brochstein, CFA
Based in Houston, Alan leverages his experience as founder of online communities 420 Investor, the first and still largest due diligence platform focused on the publicly-traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. At New Cannabis Ventures, he is responsible for content development and strategic alliances. Before shifting his focus to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst following over two decades in research and portfolio management. A prolific writer, with over 650 articles published since 2007 at Seeking Alpha, where he has 70,000 followers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, the Wall Street Journal, Fox Business, and Bloomberg TV. Contact Alan: Twitter | Facebook | LinkedIn | Email

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