AgraFlora Organics International (CSE: AGRA) (Frankfurt: PU31) (OTCPK: PUFXF) has entered into five-year commercial rights and off-take agreement with ICC International Cannabis (CSE: WRLD.U) (Frankfurt: 8K51) (OTCPK: WLDCF).
Under the agreement, AgraFlora will sell up to 100,000 kg of premium dried cannabis flower produced from its Delta Greenhouse Complex to ICC over the next five years, subject to the approval of the company’s cultivation and sales licenses by Health Canada.
“Our major supply agreement with ICC is another endorsement of our Company’s path to cannabis production and is indicative of the shear size and scale of our, soon to be, licensed growing operations in Delta, BC,” Brandon Boddy, the CEO of AgraFlora, stated.
“We are confident that the ongoing Delta Greenhouse Complex retrofit and subsequent license awards from Health Canada will enable us to convincingly supply ICC and Namaste Technologies with ultra-premium cannabis, all while accelerating our mutually beneficial global stratagems. I am confident in communicating to the marketplace that we will continue to secure commercial agreements that will add operational certainty and crystalize material long-term cash flows,” Boddy added.
This is the second major supply agreement contracted with AgraFlora, the first being with Namaste Technologies announced in n December for up to 25,000 kg of premium dried cannabis flower annually.
Delta Greenhouse Complex
Boasting 2.1-million-square-feet of growing space under glass, AgraFlora and its joint venture partner have been collaborating with Health Canada since June 2018 to prepare the large-scale, ready-made Delta Greenhouse Complex for licensing.
As a result of the commercial rights and off-take agreement, AgraFlora has committed to allocating 10% of the Delta Greenhouse Complex’s cumulative flower footprint to ICC.
Subject to the terms of the commercial rights and off-take agreement, AgraFlora may sell up to 20,000 kg of dried cannabis per annum for a five-year term from its large-scale Delta Greenhouse Complex, representing 100,000,000 grams over the duration of the initial term.