(This story has been up to date from an earlier model.)
Quebec has entered into multiyear agreements with licensed producers to supply over 60,000 kilograms (130,000 kilos) of cannabis for the province’s retail and on-line recreational shops.
With adult-use legalization in Canada looming late this summer time, the province is the most important market up to now to begin securing a supply of cannabis.
Ontario-based MedReleaf first disclosed it has signed a letter of intent with Société des alcools du Quebec (SAQ) to supply eight,000 kilograms of cannabis merchandise per yr over a three-year time period, in accordance to a regulatory submitting launched Tuesday.
On Wednesday morning, 5 different producers stated they signed supply offers with the SAQ:
- Hydropothecary, 20,000 kilograms for the primary yr
- Canopy Growth, 12,000 kilograms yearly, with no time period offered
- Aphria, up to 12,000 kilograms for the primary yr
- Aurora, at the very least 5,000 kilograms for the primary yr
- Tilray, up to 5,000 kilograms per yr for 3 years
Financial phrases of the offers weren’t disclosed.
The SAQ is a Montreal-based liquor distributor, nevertheless it created a subsidiary, Société des cannabis du Quebec, to deal with marijuana distribution.
Aggregate demand in Quebec is estimated to exceed 100,000 kilograms yearly, however the regulated market is predicted to take a quantity of years to overtake black-market gross sales.
In its submitting, MedReleaf, based mostly in Markham, Ontario, stated the SAQ chosen cultivators to present cannabis and a “broad assortment of products that cover a range of price points and experiences.”
New Brunswick has signed cannabis supply offers with Organigram, Canopy, Zenabis and Nuuvera, whereas Prince Edward Island has tapped Organigram and Canopy.
MedReleaf, Aurora, Canopy and Aphria are traded on the Toronto Stock Exchange beneath the symbols LEAF, ACB, WEED and APH respectively.
Hydropothecary is traded on the TSX Venture Exchange as THCX.
Matt Lamers may be reached at [email protected]
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