Sunniva (CSE:SNN; OTCQX:SNNVF) announced a new definitive supply agreement with Canopy Growth (TSX:WEED), to sell them 45,000 kilograms of premium cannabis product, annually over an initial two year period commencing in the first quarter of calendar 2019.
As quoted in the press release:
Under the terms of the Agreement, Canopy Growth will purchase up to 45,000 kilograms of dried cannabis annually. Canopy Growth and Sunniva will share in the revenues as product is sold through Canopy Growth’s distribution network including its online marketplace, Tweed Main Street and via provincial distribution channels. The revenue share will be based on the strain, sales channel and other relevant factors. The Agreement is subject to SMI receiving its licence from Health Canada, which is currently in the final review stage, and completing the Sunniva Canada Campus- a 700,000 square foot GMP greenhouse facility in British Columbia, Canada.
“This Agreement represents a significant milestone for Sunniva,” said Leith Pedersen, President, Sunniva. “Providing the supply of premium cannabis products under this Agreement allows Sunniva to accelerate the execution of our business plan and distribution strategy.”