Canopy Rivers Speaks Out On A Major Supply Agreement With Canopy Growth And PharmHouse

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.

Olivier’s perspective

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.


Canopy Growth Corporation Pronounces An Offtake Agreement With Pharmhouse

Canopy Growth Corporation has moved into an offtake agreement with PharmHouse Inc. According to the agreement, PharmHouse will serve Canopy Growth Corporation with top quality cannabis flower. It will obtain it from its Leamington greenhouse facility and will be districting it over the next three years. The company says that it will only dwell on the additional 20 per cent of the flowering space available in the location.

PharmHouse objectives

PharmHouse has 1.3 million square feet of greenhouse grow space and is considering licensing out its facility. At the moment, it works with Canopy Rivers to prepare the facility for the eventual licensing. They set out to do this from October 2018 to date.

PharmHouse intends to leverage on Canopy Growth’s genetics. The plan is to later sell the flower under Canopy Growth’s diverse brands and banners. The agreement also outlines that PharmHouse will over 18 months produce GMP-certified, high quality cannabis flower.The goods produced will conform to an internationally recognized system. This will be about ensuring the goods are of the highest consumer health and safety standards.

Future business plans

The company is already making preparations to export the goods to most of its international divisions. Another part of the agreement provides that 30 per cent of PharmHouse’s total flowering space will be allocated to Canopy Growth.

Chairman & Co-CEO of Canopy Growth Corporation Bruce Linton opined, “We have witnessed Canopy Rivers and its joint venture partner pour their hard work into the PharmHouse facility in Leamington and couldn’t be more satisfied with how it has turned out”.

The official states that they will expect PharmHouse to allocate them the high flower quality. He adds that the ecosystem model from Canopy Rivers won’t disappoint at all. He sees the new agreement with PharmHouse as a real showcase of how well they intend to manage their wide range of assets.

Another official lays emphasis on the need to uphold production within the ecosystem. The plan is enable Canopy Growth leverage on low cost of production from the PharmHouse facility. Canopy Growth also intends to leverage on the anticipated throughput. There are high hopes that the company will be receiving high-quality dried flower.

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