- Cannabis company Sugarbud Craft Growers (TSXV:SUGR) has entered into a wholesale distribution and supply agreement for Saskatchewan
- The agreement is with National Cannabis Distribution (NCD), which will distribute Sugarbud’s products for an initial two years
- The agreement will initially cover Sugarbud’s dry flower products, with a later amendment covering its new product offerings
- The company expects to launch its first recreational dried cannabis products late in 2020’s third quarter
- Sugarbud’s share price is up 33.33 per cent, and is currently trading for 4 cents per share
Cannabis company Sugarbud Craft Growers (TSXV:SUGR) has entered into a wholesale distribution and supply agreement for Saskatchewan.
The company entered into the exclusive provincial agreement with Canadian company, National Cannabis Distribution (NCD).
Per the agreement, NCD will be Sugarbud’s exclusive provincial wholesaler and distributor to authorised private retailers in Saskatchewan. This will be for an initial period of two years.
At first, the agreement will only cover Sugarbud’s dry cannabis flower products. However, a later amendment will allow the agreement to include new product offerings as they become available in Saskatchewan.
Sugarbud’s CEO, John Kondrosky, said that Saskatchewan’s unique private wholesale and retail cannabis distribution model differs from other Canadian provinces.
“Our partnership with NCD provided us with a clear route to market, and is a strong endorsement of both Sugarbud’s approach and product offering.
“Our agreement with NCD also marks a very important first step in our commercial rollout and entry into our target Canadian markets for adult-use recreational cannabis products.
“Sugarbud and NCD share common goals, a passion for exceptional cannabis products, and an unwavering commitment to quality and the consumer experience. We are extremely pleased to be partnering with an organisation like NCD. We look forward to launching our Craft Cannabis Collection in Saskatchewan in the very near future,” John said.
The terms and conditions of the agreement are still subject to the customary licensing and regulatory approvals. Sugarbud is still waiting for Health Canada’s approval of its sales license amendment, which may come in 2020’s second half.
The company expects to launch its first recreational dried cannabis products late in 2020’s third quarter.
Sugarbud’s share price is up 33.33 per cent, and trading for 4 cents per share, as of 11:00am EST.
