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Be the first with the news that moves the market- Maple Leaf Green World (NEO:MGW) has signed a yearly sales agreement with Canna Trading Company, worth approximately C$14.2 million
- The agreement is an upgrade of Canna’s previous $3.6 million purchase order, which it made to Maple Leaf in May
- Canna’s subsidiary will exclusively purchase Maple Leaf’s La Crème products produced by three greenhouses
- The subsidiary will buy a minimum of 20,000 pounds of flower and 20,000 pounds of biomass each year
- Maple Leaf Green World (MGW) is up 40 per cent and is currently trading at 10.5 cents per share
Maple Leaf Green World (NEO:MGW) has signed a yearly sales agreement with Canna Trading Company, worth approximately C$14.2 million.
The agreement is an upgrade of a previous purchase order, which Canna made to Maple Leaf on May 27, 2020. The initial order, worth approximately C$3.6 million, bought 5,000 pounds of La Crème cannabis flower and 5,000 pounds of biomass.
Canna chose to upgrade to a yearly sales agreement after a site tour of Maple Leaf’s California Hemp Project.
Under the new sales agreement, Canna’s subsidiary will exclusively purchase all La Crème products from three greenhouses. The purchase will provide a minimum of 20,000 pounds of flower and 20,000 pounds of biomass per year.
Canna will also have first right of refusal on any quantity of flower or biomass from the greenhouses which exceeds the 20,000 pound limit.
Maple Leaf Green World’s President and CEO, Raymond Lai, commented on the yearly sales agreement with Canna.
“We are excited to have received a yearly purchase order, pre-harvest, for half of our current growing capacity. With 20 acres of land, we can expand our capacity even further.
“We have also scheduled additional site tours for prospective clients in the coming weeks. While CBG is still in the early stages of research, it’s great to see that its potential is being recognised,” he said.
Maple Leaf has also announced the arrival of its second shipment of La Crème clones and seedlings. The clones and seedlings have since been transplanted into greenhouses.
The company plans to meet its first shipping date to Canna in August of this year.
Maple Leaf Green World (MGW) is up 40 per cent and is currently trading at 10.5 cents per share at 10:33am EDT.
