Aphria Inc (TSX: APHA) (NASDAQ: APHA) this morning announced that it has secured a strategic supply agreement with that of Canndoc, a subsidiary of one of Israel’s largest cannabis producers, Intercure. The agreement, for an initial term of two years, will see Aphria begin to ship product to Israel, one of the world’s largest importers of medical grade cannabis.
Under the terms of the arrangement, Aphria will ship dried a total of 3,000 kilograms of dried bulk cannabis to Canndoc over the two year term. Pricing for the arrangement was not provided. The contract contains two optional two-year extensions, followed by a final one year extension. Each extension is believed to be for a further 3,000 kilograms of dried cannabis.
Cannabis purchased under the supply arrangement by Canndoc will be co-branded under both Aphria’s and Canndoc’s label, and is to be sold exclusively in the Israeli market. The arrangement is also said to “include the possibility of Aphria and Canndoc collaborating on research initiatives.” Such initiatives would include items such as clinical trials in Israel. The two will also “explore” collaboration in the European market, potentially.
Aphria Inc last traded at $4.81 on the Nasdaq.
Information for this briefing was found via Sedar and Aphria Inc. The author has no securities or 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.
