Per the multi-year deal, MediPharm Labs will provide TerrAscend with a minimum $27 million of high-quality private label cannabis distillate in the next two years beginning this month. The agreement is subject to renewal and purchase options, with a potential of reaching $192 million until September 2022.
TerrAscend will utilize the supply to boost its production and to bring its branded products to Canada this fall, the company said.
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“As Canada prepares for the next stage of legalization, we are thrilled to be collaborating with a leading global company like TerrAscend focused on creating new and innovative product formulations and brands that enhance the consumer experience,” Patrick McCutcheon, MediPharm Labs CEO said in a statement.
“In addition to our expertise in producing high-quality distillate and ability to provide stable supply, we are excited to explore the potential of global and US growth opportunities with TerrAscend as we work towards our final EuGMP certification.”
TerrAscend CEO Michael Nashat said this deal enables TerrAscend to obtain top-notch extracts that shall be used in a variety of premium products targeting international and Canadian markets.
MediPharm Labs closed Tuesday’s session at $3.57 per share, while TerrAscend’s stock had a closing price of $4.23 per share.
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