Aleafia Health (TSX: AH) has entered into a new three year cannabis supply agreement as of this morning. Under the agreement, the company is to provide Europe-based Apipharm Veletrgovina with dried cannabis flower grown at its Niagara greenhouse facility.
As has seemingly become standard with such cannabis supply agreements, little details were provided of the arrangement. While it is known that the length of the agreement is three years, its unclear whether there are annual minimums or maximums within the agreement, or what the total expected size of the arrangement is.
The company did indicate that an initial purchase order has been submitted under the agreement, with Apipharm ordering an initial 1,000 kilograms of dried cannabis under the arrangement. The order is expected to ship “as early as” the end of the first quarter of 2021, which is dependent on the timing of the required governmental permits.
Aleafia Health last traded at $0.60 on the TSX.
Information for this briefing was found via Sedar and Aleafia Health. The author has no affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
