Harvest One Cannabis Inc. (TSXV:HVT), one of the Canadian marijuana stocks, has seen its stock soar since announcing a supply agreement with Shoppers Drug Mart
SmallCapPower | March 21, 2019: Harvest One Cannabis Inc. (TSXV:HVT), one of the Canadian cannabis stocks, through its wholly-owned subsidiary United Greeneries Monday announced that it has signed an agreement with Shoppers Drug Mart for supplying Satipharm branded medical cannabis products. Then, on Thursday, Harvest One said it had completed its first shipment of Satipharm to Shoppers Drug Mart.
The online sales channel will be used for the products in accordance to the Canadian regulations, which restrict the sale of medical cannabis in retail pharmacies, marking the first time Satipharm branded cannabis will be available for purchase.
Both United Greeneries and Shoppers Drug Mart will educate consumers regarding Satipharm. The products will be available in a continuum of products, each color coded to indicate their place on the progression from the high THC of SatiWhite to the high CBD of SatiPurple. At launch, United Greeneries will produce and ship an Indica variety of SatiSilver and a hybrid variety of SatiGreen.
Harvest One Cannabis CEO Grant Froese said, “We are incredibly proud to be working with Shoppers Drug Mart to supply them with our premium, indoor grown cannabis under the Satipharm health and wellness brand. We see this supply agreement as a further step towards fulfilling our vision of being a vertically integrated house of brands in the cannabis health, wellness, and self-care sector. We continue to expand our capacity to support our growing brand portfolio, which includes our recently announced transaction with Delivra as well as our existing brands Dream Water, Satipharm, Royal High, and Captain’s Choice.”
Post the announcement, shares of Harvest One Cannabis surged 25% to close at C$0.99 on Monday and its stock is up more than 31% over the past four trading sessions to its current price of $1.04. Harvest One Cannabis stock trades at a market capitalization of C$198 million with a price-to-book multiple of 1.95x.
Disclosure: Neither the author nor his family own shares in the company mentioned above.
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