Eve & Co wholly-owned subsidiary Natural MedCo has entered into a second binding non-exclusive supply agreement for the sale of dried cannabis to a German importer and distributor.
According to the company, the supply agreement is for an initial term of three years and is automatically renewable for two subsequent two-year terms unless otherwise terminated by the parties at the end of the initial or renewal term. "The German distributor has agreed to purchase 500 kilograms of dried cannabis per month for the first two months and a minimum of 1,000 kilograms and a maximum of 5,000 kilograms per month for the next 22 months," the team with the company explains. "We expect to commence shipments subsequent to the anticipated Q2 2019 completion of our 780,000 square foot greenhouse expansion, and the anticipated subsequent approval thereof by Health Canada."
“This is a very significant supply agreement for Eve & Co. as it provides another inroad to the German market. The timing fits well with our anticipated expansion facilities coming online and the related ramp up of production," says Melinda Rombouts, President and Chief Executive Officer of Eve & Co.
The purchase and sale of dried cannabis under the supply agreement are subject to various conditions precedent, including receipt of all requisite regulatory approvals, including applicable Canadian and Germany export and import authorizations.
Additionally, the German importer and distributor with respect to Eve & Co’s initial German supply agreement, as announced on January 30, 2019, has now received the necessary import permit from the German government. Eve & Co is now in the process of seeking the necessary export permit from Health Canada and anticipates that is will commence shipping product pursuant to this supply agreement by Q3 2019.