Sunniva (CSE:SNN; OTCQX:SNNVF) announced the receipt from Health Canada of its confirmation of readiness to obtain a license on the Access to Cannabis for Medical Purposes Regulations (ACMPR) for its subsidiary.
As quoted in the press release:
This represents acceptance of our detailed application with the next step being an inspection upon site readiness in order to commence cultivation.
The license and the expected completion of the Sunniva Canada Campus will position the Company as a significant supplier to the rapidly growing Canadian cannabis market. Sunniva previously announced a take or pay supply agreement with Canopy Growth Corporation (“Canopy”). Under the terms of the initial two-year agreement, which includes the distribution of Sunniva branded products, Canopy will purchase approximately 45 [percent] of Sunniva’s annual production capacity; representing 45,000 kgs of dried cannabis annually, commencing Q1 2019 or shortly thereafter. The agreement is subject to SMI receiving its license from Health Canada and completing the Sunniva Canada Campus.