Canopy Rivers Inc says that PharmHouse Inc- its portfolio company- has moved into a second offtake agreement. It enters this agreement with Canopy Growth Corporation and the target is to obtain high quality cannabis. The business guru is confident that the 1.3 million square foot greenhouse facility won’t disappoint and it seeks to obtain proper licensing as soon as possible.
Details regarding the agreement
The agreement outlines that an additional 20% of PharmHouse’s flowering space will be dedicated to Canopy Growth. This will go on for about three years. The company had in May 2018 directed about 10% of its flowering space.
Canopy Growth looks forward to obtaining a minimum of 25,000 kg of cannabis on a yearly basis. It adds that on the maximum it might be receiving about says it might attain a maximum of 45,000 kg of cannabis per year.
The Chief Operating Officer of Canopy Rivers Olivier Dufourmantelle outlines that PharmHouse continues showcasing tremendous progress. He adds that the joint venture is expanding quite fast and that it is the major pillar for value creation. The official believes that much needs to be done to enhance the Canopy Rivers portfolio ecosystem.
Dufourmantelle opines, “Thanks to the collaborative contributions of our joint venture partners, the ongoing support and guidance of Canopy Rivers, and the strategic insight of Canopy Growth throughout the licensing process”.
Olivier says that the recently announced incremental supply partnership is a good sign emphasizing that it will benefit all the parties involved.
The new supply arrangement is about giving PharmHouse financial de-risking and additional revenue visibility for a large part of production. Analysts say that the flagship facility will deliver desirable results. Currently, Canopy Rivers is the holder of about 49% equity interest. It also covers almost 50% of the anticipated yearly output.
PharmHouse looks to develop its own suite of brands and products with the 50% increment in output. General Manager of PharmHouse Tony Abbas believes that the offtake agreement is a major step forward for them. He proceeds to disclose details about the next agreement they intend to execute with Canopy Growth. According to the official, the latest activities are a sign that they have been engaging in quality operations and that their team is committed to progress.