In this week's "Rising High," The Fly's recurring series focused on cannabis and psychedelic stock news, The Fly looks back on supply agreements, a market entry and partnerships.
HEXO, ENTOURAGE SIGN SUPPLY AGREEMENT: HEXO Corp. (HEXO) announced Tuesday the execution of a long-term supply agreement with Entourage Health Corp. (ETRGF). Under the agreement, HEXO will provide Entourage with bulk dried cannabis and soft gel capsules, to be marketed to patients and consumers under Entourage’s family of brands. HEXO-branded products, including Gems cannabis soft gels, Redebles gummies from Redecan, and selected Redees premium pre-rolls as applicable, will also expand Entourage’s premium product offerings available to respective patients of Starseed Medicinal and Syndicate Cannabis medical marketplaces.
The company said, “This strategic relationship will allow HEXO to better address the needs of Canadian medical patients through Entourage’s medical channels. At the same time, Entourage will benefit from HEXO's leading cultivation and processing capabilities by obtaining a consistent supply of quality-produced, top-shelf cannabis and soft gel capsules to meet Entourage’s anticipated short-term demand.”
KHIRON BEGINS SALES IN SWITZERLAND: Khiron Life Sciences (KHRNF) announced Wednesday its market entry into Switzerland with initial sales of new products and increases its product offerings in Germany and UK. In August 2022, Khiron completed the acquisition of its EU GMP-certified manufacturer and wholesaler, Pharmadrug in Germany. Since then, the company has obtained import and export permits across Germany and the UK bringing to market its new product offerings, as well as looking for opportunities to expand its presence in other European markets. The Alpine Republic of Switzerland has become the next market for Khiron. The start of the expansion is marked by the availability of the flower products KHIRON Gelato 19/1 and KHIRON Caramel 5/7.
ORGANIGRAM, INTERCURE ENTER SUPPLY DEAL: Organigram Holdings (OGI) and Canndoc, a subisidiary of Intercure (INCR), jointly announced Thursday that they have entered into a new multi-year agreement for Organigram to continue supply of dried flower to InterCure. Organigram and InterCure entered into a previous strategic supply agreement in June 2020, that contemplated a minimum supply of 3,000 kg all of which has been fulfilled. The new agreement contemplates up to 20,000 kg to be supplied to InterCure's international supply chain. Specifically, the agreement provides for a commitment of 10,000kg with an option for Canndoc to elect to order up to an additional 10,000kg from Organigram during the three-year term. Approximately 2,800 kg has already been delivered to Canndoc from Organigram since July 2022 and credited against the total volume commitment under the agreement. Subject to the terms and conditions of the agreement, Organigram has agreed to exclusively supply InterCure in Israel for the term. Additionally, the parties agreed on certain popular genetics which will be exclusively supplied for distribution into InterCure's international supply chain, subject to local regulations.
GROWGENERATION, GRODAN ENTER PREMIUM PARTNERSHIP: GrowGeneration (GRWG) announced Wednesday that the company has entered into a premium partnership with Grodan, a producer of stone wool growing media solutions for a wide variety of hydroponics operations. GrowGen is now a Platinum Certified dealer of Grodan products.
“Grodan’s innovative and sustainable stone wool products are the best in the industry,” said Rebecca Haluska, SVP of Purchasing for GrowGen. “The direct partnership brings Grodan stone wool growing solutions to the entire GrowGen retail footprint and further delivers on our commitment to provide high-quality products to our customers at the best prices.”
FLORA GROWTH PARTNERS WITH 357: The 357 Company announced Monday it is launching the 357 Canna Logistics division as an expansion beyond its 357 Hemp Logistics division that specializes in shipping federally legal hemp within the U.S. 357 Canna Logistics will initially focus on logistics management and shipping of cannabis and hemp between countries that have legalized it. Outside the U.S., countries use the term “cannabis” for non-industrial hemp and cannabis, regardless of THC content, so 357 will refer to all international shipments as “cannabis.” The cannabis export/import industry is in its infancy, primarily consisting of shipments of non-industrial products, such as CBD isolates and oils with THC <0.3%, due to the regulatory environment.
“The 357 Company is expanding into international shipping of cannabis, hemp and industrial hemp to set the bar high in a nascent industry that is poised for dramatic growth,” stated Kevin Schultz, co-founder and President. “Shipping cannabis internationally is extremely complex. A pioneer in international cannabis shipping, 357 Canna Logistics is one of the few companies that has combined experience in cannabis and international logistics. We’re launching 357 Canna Logistics with our launch partner, Flora Growth (FLGC), and several other cannabis companies, who are currently shipping throughout the EU, UK, US, and South America, with more countries to be added by year-end.”
Additionally on Wednesday, Flora Growth announced the completion of its new laboratory, specializing in the manufacturing of compound formulations utilizing cannabis derivatives and traditional master formulas. Located in Bogota, Colombia, Flora Lab 4 will become part of Flora’s group of laboratories including existing labs that produce cosmetics, phytotherapeutic products, dietary supplements, and cannabis extraction and transformation.
CANNABIS/PSYCHEDELIC STOCKS: Publicly-traded companies in the space include Acreage (ACRHF), Akerna (KERN), Aleafia (ALEAF), Atai Life Sciences (ATAI), Audacious (AUSAF), Aurora Cannabis (ACB), Awakn Life Sciences (AWKNF), Ayr Wellness (AYRWF), Body and Mind (BMMJ), Canopy Growth (CGC), Cannara Biotech (LOVFF), Chicago Atlantic (REFI), Clever Leaves (CLVR), Columbia Care (CCHWF), Compass Pathways (CMPS), CordovaCann (LVRLF), Cresco Labs (CRLBF), Cronos (CRON), Curaleaf (CURLF), CURE Pharmaceutical (CURR), CV Sciences (CVSI), Cybin (CYBN), Delic Holdings (DELCF), Delta 9 (DLTNF), Fire & Flower (FFLWF), General Cannabis (CANN), Greenlane (GNLN), The Green Organic Dutchman (TGODF), Green Thumb (GTBIF), Goodness Growth (GDNSF), Hemp (HEMP), High Tide (HITI), India Globalization Capital (IGC), Indiva (NDVAF), Innovative Industrial Properties (IIPR), IM Cannabis (IMCC), Wellbeing Digital (KONEF), Lowell Farms (LOWLF), Lotus Ventures (LTTSF), MediPharm Labs (MEDIF), MedMen (MMNFF), Neptune Wellness (NEPT), NewLake Capital (NLCP), Planet 13 (PLNHF), Reunion Neuroscience (REUN), Revitalist (RVLWF), RIV Capital (CNPOF), Relmada (RLMD), RYAH Group (RYAHF), Safe Harbor (SHFS), SLANG Worldwide (SLGWF), Sproutly (SRUTF), Stem Holdings (STMH), Small Pharma (DMTTF), Skye Biosciences (SKYE), SNDL (SNDL), Sunniva (SNNVF), TerrAscend (TRSSF), Tetra Bio-Pharma (TBPMF), Tilray (TLRY), Trulieve (TCNNF), Tryp Therapeutics (TRYPF), The Valens Company (VLNS), Verano Holdings (VRNOF), Village Farms (VFF), Wesana Health (WSNAF), Zynerba (ZYNE) and 4Front Ventures (FFNTF).
