Supreme Cannabis subsidiary signs deal to supply dried cannabis to Tilray

A subsidiary of Supreme Cannabis Company Inc (TSXV:FIRE) said on Wednesday it has signed a supply agreement to provide dried cannabis to a subsidiary of Tilray Inc (NASDAQ:TLRY) for C$12 million.

The agreement is between Supreme’s wholly owned subsidiary 7ACRES and Tilray Canada Ltd. It will cover the 12-month period starting October 1, 2018. The dried cannabis provided to Tilray by 7ACRES will be used primarily to support medical cannabis patients in Canada, a statement said.

“We are excited to be entering into this agreement with Tilray, an organization – like Supreme Cannabis – that focuses on the end user and demands leading quality assurance standards,” said John Fowler, president of The Supreme Cannabis Company.

READ: Tilray stock rises after announcing deal to supply medical cannabis to critically ill Australian children

Tilray shares climbed 5.67% in the Wednesday premarket to trade at US$114, having dropped 8.42% to settle on Wednesday at US$107.88.

Shares of Supreme Cannabis in Canada closed on Tuesday down 4% at C$2.16.

“We believe this agreement demonstrates the quality of the 7ACRES dried flower, and the infrastructure, management and systems that support our brand positioning,” Fowler added.

Supreme Cannabis Company’s 7ACRES is a federally licensed cannabis producer operating a 342,000-square-foot facility in Kincardine, Ontario. 7ACRES has provincial supply agreements with the provinces of Ontario, British Columbia, Alberta, Manitoba, Nova Scotia and Prince Edward Island.

The company’s growing portfolio also includes an equity investment and long-term global distribution partnership with Lesotho-based Medigrow to export medical-grade cannabis oil. The company is based in Toronto.

Tilray is a global pioneer in the research, cultivation, production and distribution of cannabis and cannabinoids. The company is based in Nanaimo, British Columbia.

Story by ProactiveInvestors