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Be the first with the news that moves the market- Rubicon Organics (CSE:ROMJ) has signed a cannabis supply agreement with Canacur GmbH, a Germany-based medical cannabis distributor
- Under the agreement, Canacur will purchase dried cannabis from Rubicon for an initial term of three years with a two-year extension option
- Canacur has also agreed to provide a C$700,000 advance payment for the cannabis products
- Pending EU certification, the company is expecting exports to begin in the first half of 2021
- Rubicon Organics (ROMJ) is holding steady and is trading at $2.75 per share
Rubicon Organics (CSE:ROMJ) has signed a cannabis supply agreement with Canacur GmbH, a Germany-based medical cannabis distributor.
Through its wholly owned subsidiary, Vintages Organic Cannabis Company, Rubicon produces and sells organic-certified cannabis from its 125,000 square foot hybrid-greenhouse in British Columbia.
Under the agreement, Canacur will purchase dried cannabis from Rubicon over an initial period of three years. The deal also include two optional two-year extensions.
In addition, Canacur has agreed to provide a C$700,000 payment advance for the products, which will be secured through existing lenders on Rubicon’s facility in Delta. This payment is expected to assist in the planned EU-GMP certification process.
Once this certification has been completed, cannabis shipments are expected to occur in the first half of 2021.
Jesse McConnell, CEO of Rubicon Organics, said he is excited to bring the company’s high-quality cannbis to medical patients in Germany.
“This milestone agreement with Canacur provides another route to market and access to the fast-growing German medical market,” he added.
The deal with Canacur come off the back of other supply agreements signed earlier this month with Alberta Gaming, Liquor & Cannabis and the British Columbia Liquor Distribution Branch.
Under these deals, Rubicon has secured the right to sell and distribute cannabis products to provincial and private retailers in both Alberta and British Columbia.
Like many companies, Rubicon’s share price took a hit in mid-February following the onset of the COVID-19 pandemic, falling almost 37 per cent from February 19 until the end of March.
However, with global markets now responding to an improved virus outlook, the company’s share price more than recovered and is up more than 77 per cent since the start of April.
Rubicon Organics (ROMJ) is holding steady and is trading at $2.75 per share at 11:19am EDT.
