Canopy Rivers announced an offtake agreement where PharmHouse will supply TerrAscend with cannabis products until 2021.
As quoted in the press release:
Canopy Rivers is pleased to announce PharmHouse, has entered into an offtake agreement (the “Agreement”) to supply TerrAscend Canada, a wholly-owned subsidiary of TerrAscend, with cannabis products from 20 [percent] of the flowering space at its 1.3 million square foot greenhouse facility until December 31, 2021.
Both PharmHouse and TerrAscend are substantial pillars in the Canopy Rivers’ investment portfolio, and this Agreement represents a de-risking milestone for each company. Leveraging the anticipated throughput and low cost of production from the PharmHouse facility positions TerrAscend Canada with a sizeable source of dried flower and trim for packaging, processing, and distribution throughout the TerrAscend logistics platform without the need for considerable capital expenditures. For PharmHouse, the Agreement provides increased sales visibility and financial de-risking for a significant portion of the expected production from its flagship facility.”
“We are seeing promising synergies develop within the Canopy Rivers portfolio,” said Bruce Linton, Chairman and Acting CEO of Canopy Rivers, and co-CEO of Canopy Growth Corporation. “We set out to create an ecosystem of complementary cannabis companies that can strategically support one another.