Tilray Inc. (NASDAQ: TLRY) shares got a little higher on Wednesday after the company announced that it had entered into a supply agreement with 7ACRES, a subsidiary of the Supreme Cannabis Company.
This agreement is a guaranteed commitment to purchase. It will cover the 12-month period starting October 1, 2018, and is estimated to have a value of roughly C$12 million, or US$9.3 million.
As was the case with the recently announced deal between the two companies, the dried cannabis provided to Tilray by 7ACRES will be used primarily to support medical cannabis patients in Canada, including Tilray’s robust patient population.
7ACRES is a federally licensed cannabis producer operating a 342,000-square-foot facility in Kincardine, Ontario. It is dedicated to providing consumers with a premium-quality product that recognizes its customers are informed, discerning and value a brand and culture that aligns with their principles.
John Fowler, president of Supreme Cannabis, commented:
We are excited to be entering into this agreement with Tilray, an organization – like Supreme Cannabis – that focuses on the end user and demands leading quality assurance standards. Tilray has built an industry-leading global medical distribution platform, which has resulted in robust demand for high quality cannabis products. We are happy to provide 7ACRES premium products alongside Tilray’s well-regarded and existing lineup to support medical patients around the world.
Shares of Tilray were last seen up 3% at $111.30, with a consensus analyst price target of $49.33 and a 52-week trading range of $20.10 to $300.00.