(MENAFN- ProactiveInvestors - N.America) Medical marijuana grower Supreme Pharmaceuticals Inc (CSE:SL) is on a roll.
It has now secured letters of intent (LOIs) with five licenced producers over the long term supply of marijuana.
If they turn into definite agreements, it would mean the sale of more than 250kg of dried marijuana and 70 kg of dried marijuana trim in 2016, representing pretty much all of the group subsidiary's anticipated production for 2016, the firm said.
In addition, the agreements will be renewable for successive one-year periods.
John Fowler, Supreme's president and chief executive, told investors: "These LOIs validate our B2B business model, leveraging our competitive advantage as a single-licence producer operating one of the largest, most innovative production facilities in the country.
"Our goal is to support aggregate growth in the industry by providing leading retailers with high-quality, sun-grown cannabis and today is the first step towards that goal."
Supreme is the first LP in Canada to focus exclusively on a B2B model intended to provide stable, long-term supply to retail focused LPs, it added.
The deals are conditional upon various factors, including gaining regulatory approvals, a sales licence and completion of due diligence.
Last month the group struck a strategic tie-up with top Spanish international cannabis seed developer. Dinafem Seeds, which will supply Supreme's wholly owned subsidiary, AMMCan with seeds to be used in the group's seven-acre (342,000-square-foot) facility in Ontario.
Dinafem will also supply Supreme with exclusive continuing consulting services.
That news comes hot on the heels of the new opening of Supreme's new greenhouse.
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