Organigram Holdings (TSX: OGI) (NASDAQ: OGI) this morning announced that it has entered a supply agreement with Canndoc, one of the largest Israeli medical cannabis producers. The agreement is for a period of two years, and is for the supply of dried cannabis flower.
Financial details related to the announcement were slim, with the company instead identifying that the supply agreement is for a guaranteed 3,000 kilograms of dried flower product, to be delivered by December 31, 2021. Canndoc also has the option to purchase up to an additional 3,000 kilograms during the allotted time period.
In terms of dollar value, Organigram stated, “The agreement provides for a tiered pricing scheme and the exact value will vary depending on factors such as potency and product mix.” As such, a final figure for the large international order is not known, nor is relative pricing of product. The agreement does however enable Organigram to launch branded medical products within Israeli and European markets via Canndoc, with exclusivity and such rights being awarded to Canndoc for a period of 7.5 years.
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Canndoc is a subsidiary of InterCure Ltd, the first licensed medical cannabis operator to list on the Tel Aviv Stock Exchange.
Organigram Holdings last traded at $2.03 on the Nasdaq.
Information for this briefing was found via Sedar and Organigram Holdings. 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.
