This morning, six companies including Canopy Growth Corporation (TSX:WEED) (OTC:TWMJF) and more, signed letters of intent with the Société des alcools du Québec (a.k.a "SAQ") to guarantee a supply of high-quality, safe and clean cannabis products for sale in the Quebec adult-use market through their retail outlets and e-commerce platform.
Of the six LOI's signed with SAQ, there was some variance in regards to the amount of cannabis to be supplied and length of agreement from company to company. Let's take a look at them here below:
The Hydropothecary Corporation (TSXV:THCX) (OTC:HYYDF), 20,000 kilograms for the first year
Canopy Growth Corporation (TSX:WEED) (OTC:TWMJF), 12,000 kilograms annually, with no term provided
Aphria Inc. (TSX:APH) (OTC:APHQF), up to 12,000 kilograms for the first year
MedReleaf Corp. (TSX:LEAF) (OTC:MEDFF), a minimum of 8,000 kilograms of cannabis products per year
Aurora Cannabis Inc. (TSX:ACB) (OTC:ACCBF), at least 5,000 kilograms for the first year
Tilray, up to 5,000 kilograms per year for three years
While Hydropethcary has the smallest market capitalization out of the five public companies at around $500+ Million USD, it received the largest agreement for 20,000 kilograms in place for year one. This may be because of the fact that out of the six companies, Hydropothecary is the only Quebec-based LP.
Aurora, based in Alberta, recently received a cultivation license from Health Canada for the 40,000 square foot Pointe Claire, Quebec facility that the company got in its acquisition of bankrupt applicant Peloton.
Tilray, the only non-publicly traded company on the list above, is owned by Privateer Holdings, the cannabis-focused private equity firm that just raised more than $100 million USD.
As the roll out of legalized adult-use cannabis initiates throughout Canada this year, we will be sure to keep readers informed of the important updates as they happen.
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D/M/O
