Ontario-based cannabis company Wayland Group (CSE: WAYL) just inked a supply agreement deal to acquire a large quantity of dried flower marijuana from RavenQuest BioMed Inc. (CSE: RQB; OTCQB: RVVQF).
The $2 million supply deal will see Wayland acquire 8,000 kg of cannabis, spread throughout 2019 in multiple shipments as supply is produced, with an initial shipment planned for this coming March after the next harvest is completed.
Health Canada granted RavenQuest a business-to-business license to sell cannabis from the company’s production facility in Markham, Ontario in mid-November. RavenQuest focuses on sales direct to other businesses to stay competitive with wholesale provincial pricing, and completed its first ever sale of cannabis earlier this month to an unnamed company.
Chief Executive Officer George Robinson expressed excitement at the prospect of meeting increased marijuana demand in a supply-hungry nation by teaming up with Wayland, and stated the agreement was a major victory for both companies. Robinson commented:
Apart from the supply deal with RavenQuest, Wayland Group has also been expanding cannabis operations internationally by acquiring Colombian company Colma Pharmaceutical, in addition to buying a majority stake in Australian company Tropicann Pty Ltd.
These moves to acquire supply from multiple sources come in the wake of full recreational Canadian legalization back in October, which has seen companies struggle to provide enough product in any province.
While the federal government initially expressed confidence that marijuana supply would meet initial consumer demand, empty store shelves and massive online order backlogs have plagued the industry since legalization arrived.
In light of that continuing issue, supply and extraction deals have been struck regularly in the past two months, and will likely continue to dominate deals and acquisitions in the new year.
Canopy Growth Corporation (TSX: WEED; NYSE: CGC) for instance just signed an 18-month deal to procure cannabis extract from MediPharm Labs to produce edible products, while Cannmart landed a right of first refusal supply deal to acquire medical marijuana from Rocky Mountain Marijuana Inc.
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