Sugarbud Craft Growers Corp. has entered into a strategic supply and contract manufacturing agreement with Heritage Cannabis Holdings Corp.
Under the terms of the agreement, Sugarbud will supply Heritage with a minimum of 100,000 grams of premium dried cannabis per month for an initial term of twenty four months commencing May 1, 2020, and Heritage will provide extraction, formulation and production services to Sugarbud for the development of pre-filled vape cartridges, utilizing proprietary additive-free formulations created by Sugarbud, all subject to customary licensing and regulatory approvals.
“Our agreement with Heritage is the second major supply agreement we have announced in the last month and together with the previously announced supply agreement with Adastra Labs is another exciting step forward for Sugarbud and our overall commercial business plan,” stated Mr. Kondrosky, CEO of Sugarbud.
With new and expanded cannabis regulations coming into effect in Canada this October, Canadian consumers will have access to a wider range of new cannabis derivative products and formats. Sugarbud expects that high quality vape cartridges and pens will become a significant catalyst for future growth.
“The supply and contract manufacturing agreement with Heritage is a significant milestone for Sugarbud as we continue to focus and execute against our overall product leadership strategy in the inhalable cannabis category,” stated John Kondrosky.
“We are confident that our partnership with Heritage will equip Sugarbud to deliver high quality products with safety and integrity as we prepare to introduce our proprietary premium vape pen formulations to the Canadian adult-use recreational and medical cannabis markets,” Mr. Kondrosky continued.
“We are pleased to have this agreement with Sugarbud as they embark on their first grow of high-quality premium cannabis. This allows us to work with them from the beginning to align their grow and strains with what we know provides the best results with our processes,” stated Clint Sharples, CEO of Heritage. “Sugarbud joins the group of Licenced Growers supplying Heritage with high quality cannabis for our extraction needs. As the market evolves, we believe quality will be the differentiating factor for the end user.”
Sugarbud is a federally licensed Alberta-based publicly traded cannabis company focused on the cultivation and production of high-quality premium cannabis, and product leadership through the development, production and distribution of value-added cannabis products in Canada.