As Canada continues to prepares legalize recreational cannabis, Quebec consumers are getting a first look at the companies that will provide the province with cannabis. Six cannabis companies announced today that they have signed a letter of intent with the Société des alcools du Québec, the provincial crown corporation responsible for the trade of alcohol and cannabis in the province of Quebec.
Aphria Inc. (APH), based out of Leamington, Ontario, has agreed to provide the province with approximately 12,000 kg of branded cannabis products, including cannabis grown in Ontario and British Columbia and cannabis-derivative products such as cannabis oil, for the first year of the agreement.
Likewise, Canopy Growth Corporation (WEED) has agreed to provide the province with 12,000 kilograms of cannabis. This marks Canopy’s fourth provincial supply agreement; the other provinces are New Brunswick, Newfoundland and Labrador, and Prince Edward Island.
Landing the largest provincial supply agreement was the Hydropothecary Corporation (THCX), which is based in Quebec. Under the LOI, Hydropothecary has agreed to provide a minimum of 20,000 kilograms of cannabis annually. The company is close to completing production facility expansions which will increase its annual production capacity to 108,000 kilograms and make it one of the largest cannabis producers in Canada.
“This supply arrangement is an important step for Hydropothecary. We are honoured by the opportunity to supply cannabis in our home province and we want Quebecers to know that we are committed to providing safe and high-quality products for the adult-use recreational market,” said Hydropothecary CEO and co-founder Sebastien St-Louis in a statement.
Aurora has agreed to provide a minimum of 5,000 kilograms per year, with supply to be determined on a month-to month basis and determined by consumer demand. Most of the cannabis provided by Auror will come from its Quebec-based production facilities.
Similarly, Tilray will also supply Quebec with up to 5,000 kilograms of cannabis, and cannabis-derivative products per year, across a variety of its branded prodcuts. Tilray’s medically branded cannabis will continue to be sold exclusively in pharmacies and online.
MedReleaf won a slightly larger supply agreement than both Aurora and Tilray. Under MedReleaf’s LOI, the company will supply approximately 8,000 kilograms of cannabis .