Agreement establishes Organigram Holdings Inc.’s (TSXV:OGI) portfolio within the retail stores of Canopy Growth Corporation (TSX:WEED), one of the Canadian marijuana stocks, in this market news
SmallCapPower | September 25, 2018: Canopy Growth Corporation (TSX:WEED) and Organigram Holdings Inc. (TSXV:OGI), two Canadian cannabis stocks, announced recently that they have signed a two-year supply and distribution agreement in the province of Newfoundland and Labrador. The deal follows Organigram Holdings’ operating subsidiary, Organigram Inc., receiving approval as a cannabis supplier in the province. As per the agreement, Organigram will supply branded, finished cannabis products to Canopy Growth’s Tweed-branded retail operations in the province once adult recreational cannabis is legalized in Canada. Organigram’s products will also be marketed by Canopy Growth to other retail outlets in Newfoundland and Labrador.
While the deal provides Organigram with a strong distribution platform in Newfoundland and Labrador, it complements Canopy Growth’s existing product mix to provide Tweed customers with additional options in the province. Organigram currently has supply agreements with six other provinces (New Brunswick, Nova Scotia, Prince Edward Island, Alberta, Manitoba and Ontario) and the current deal applies only to Newfoundland and Labrador. Canopy Growth, meanwhile, has secured supply agreements in all Canadian provinces.
Canopy Growth EVP, Recreational Cannabis & Managing Director Rade Kovacevic said, “Customers exploring the new cannabis retail environment will be looking for product diversity. Similar to our medical cannabis e-commerce site, offering our customers a wide product offering, focused on diverse and complementary brands, has always been a key strategy for us.”
Based in Moncton, New Brunswick with a market cap of approximately $879 million, Organigram considers itself the cannabis market leader in Canada’s Maritime Provinces.
Canopy Growth is the world’s largest and most diversified cannabis producer, offering distinct brands and curated cannabis varieties in dried, oil and Softgel capsule forms. Canopy Growth is also the most valued cannabis company in Canada, with a market cap of $15.5 billion on the TSX.
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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