Aurora Cannabis supply agreement: Vancouver-based medical cannabis company Aurora Cannabis Inc. (TSX:ACB) (OTC:ACBFF) has entered into a supply agreement with Ascent Industries.
According to the announcement, which was released on Monday, Aurora has agreed to purchase “up to 20,000 kg of dried cannabis flower and up to 6,000 kg of cannabis trim per year” from Ascent subsidiary Agrima Botanicals Corp.
The contract will be in effect for five years and requires a 12,000-kilogram minimum purchase every year.
According to Aurora CEO, Terry Booth, “the agreement with Ascent brings further differentiation to Aurora’s growing portfolio of products” and “[expands] product choice to [the company’s] various audiences.”
Another example of Aurora’s attempts to expand its product choices includes the recent announcement in May on the release of its latest cannabis product, Aurora Frost. The product has some of the highest potency levels of THC (tetrahydrocannabinol) out of any previous Aurora product, at nearly 35% THC.
In addition, Aurora has also entered into an agreement with the German-based medicinal plant company Heinrich Klenk GmbH & Co., allowing Aurora to expand its European footprint.
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CEO and Director of Ascent, Philip Campbell, has said that the company is “delighted to be selected as a supplier to Aurora” and stated that they “believe this represents the beginning of a strong strategic relationship with Aurora…which will benefit both companies for years to come.”
The dried cannabis flower and trim will be supplied from Agrima’s facilities in Pitt Meadows, British Columbia.
Shares of Aurora have gone down three percent on Monday and were hovering near $9.00 CAD, as of 1:35 pm EDT. So far, the company has been able to reach a high share value of $9.28 and a low of $8.89 after opening at $9.23.
Compared to these values, the company closed at $9.30 on Friday, with a high of $9.56 and a low of $8.88.
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