Canada: Québec orders tons of cannabis from six growers

Anticipating the coming legalization of cannabis, the government of Québec hasn't been sitting still. They've signed agreements with six different growers, who will supply the province with marijuana over the coming years.

Hydropothecary: 200,000 kg in total
Hydropothecary has entered into a commercial agreement with the Société des alcools du Québec (SAQ) to be the preferred supplier of cannabis products for the Quebec market for the first five years post-legalization, with an option to extend the term for an additional year.

Under the agreement, Hydropothecary will supply 20,000 kg of products in the first year of the agreement and is expected to supply 35,000 kg in the second year and 45,000 kg in the third. The volumes for the final two years of the agreement will be established at a later date based on the sales generated in the first three years. The supply arrangement covers the full range of the company’s products and brands, from flowers to cannabis oil.

Aphria: 12,000 kg a year
Aphria has finalized the previously announced supply agreement with the Société des alcools du Québec. The three-year agreement for up to 12,000 kg annually guarantees a supply of cannabis products for sale in the Quebec adult-use market, through the Société québécoise du cannabis' retail outlets and e-commerce platform.

"We are very pleased to finalize this agreement with the SAQ and look forward to supplying the Quebec adult-use market with a variety of high-quality, safe and pure cannabis products," said Vic Neufeld, Chief Executive Officer of Aphria. "Our product and brand portfolio has been specifically developed to meet the needs of very distinct market segments, and we look forward to offer adult-use consumers in Quebec a unique choice."

MedReleaf: 8,000 kg a year
MedReleaf has completed a supply agreement with Société des alcools du Québec to supply the future Société québécoise du cannabis (SQDC) with high quality adult recreational-use cannabis products in accordance with the previously announced Letter of Intent.

Under the terms of the agreement, MedReleaf is committed to supplying the Quebec market with 8,000 kilograms of cannabis products per year with a minimum three-year term.

High Park: 5,000 kg a year
Tilray Canada has signed an agreement with the Société des alcools du Québec to supply the Québec market with high-quality cannabis brands and products in anticipation of adult-use legalization later this year. Tilray will fulfill the agreement through its affiliate High Park, which was formed to produce and distribute a broad-based portfolio of adult-use cannabis brands and products.

Under the terms of the agreement, High Park commits to supplying the Quebec market with 5,000 kilograms of cannabis per year across a variety of brands for a three-year period. The agreement is conditional on the adoption by the federal and provincial governments of the necessary regulatory framework.

Aurora: 5,000 kg a year
Aurora has completed a final agreement with the Société des Alcools du Québec to supply a minimum of 5,000 kg of cannabis per annum for the Quebec adult consumer market, once legalized.

Under the terms of the agreement, Aurora will supply the Quebec market, on a monthly basis, with a wide variety of premium product from its facilities in Quebec, and elsewhere if demand requires. Supply quantities will be determined based on demand on a month by month basis, with a minimum of 5,000 for the first year, but no set maximum. The initial term of the contract is to August 31, 2021.

Canopy: 12,000 kg in total
Canopy Growth has completed a three year supply agreement with the Société des alcools du Québec for 12,000 kgs of high-quality cannabis products.

"This agreement is an exciting next step in delivering a wide range of our safe, high-quality products to consumers across the province," said Mark Zekulin, President, Canopy Growth. "Quebec is home for Canopy Growth and we're proud to be advancing this long term partnership to develop the Québec market."