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IM Cannabis’ producer signs new supply agreement

Cannabis
27 April 2020 12:55 (EDT)

IM Cannabis’ (CSE:IMCC) licensed producer, Focus Medical, will purchase up to 8,060 kilograms of medical cannabis from a new supplier.

Focus Medical Herbs, a licensed medical cannabis producer, signed a supply agreement with the unnamed supplier for the purchase. Focus Medical currently has an exclusive commercial agreement with IM Cannabis, to distribute its production under the IMC brand.

The company signed the supply agreement on April 26, 2020.

Initially, the unidentified supplier will provide Focus Medical with approximately 560 kilograms of medical cannabis in 2020. 

If the first round meets the agreement’s quality criteria, then the supplier will increase its supply going forward.

From that point onward, the supplier will provide 2,500 kilograms each year, between 2021 and 2023. This will result in the combined total of 8,060 kilograms agreed upon.

While today’s announcement did not reveal the identity of the supplier, it mentioned that it currently operates with IMC-GAP certification. All strains which it cultivates under the supply agreement will be proprietary to Focus Medical.

This latest agreement brings the total number of suppliers cultivating for Focus Medical, under the IMC brand, to five. This year, Focus Medical already signed supply agreements with Cannomed Medical Cannabis Industries, Intelicanna, Way of Life, and Cannation.

IM Cannabis’ CEO, Oren Shuster, was happy that Focus Medical has added another supplier to the team.

“Now the supply side of the businesses is being strengthened with Focus Medical’s fourth supply agreement announced in 2020.

“We are very confident our suppliers will deliver the quality medical products we require to maintain our position as a leading brand. We look forward to working with them for years to come,” he said. 

Focus Medical has its own facility in Sdei Avraham, Israel. By combining that facility’s capacity and this agreement’s supply, Focus Medical has now secured enough medical cannabis to meet its obligations to previously announced pharmacy sales agreements.

In 2020, Focus Medical has signed six pharmacy sales agreements. These binding agreements are for the sale of 4,000 kilograms of IMC-branded products within the year. The result will be approximately C$193.5 million in consolidated revenue for IMC in the next three years. 

IM Cannabis Corp (IMCC) remains steady at $0.47 per share, as of 10:02am EST.

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