Market Overview

Tilray's High Park Strikes New Supply Agreement With Zenabis Global

Share:
Tilray's High Park Strikes New Supply Agreement With Zenabis Global
Read more about our latest Cannabis News! CANNABIS HOME

Canada-listed cultivator of medical and recreational cannabis company Zenabis Global said Tuesday it entered into a new supply agreement with Tilray Inc (NASDAQ: TLRY).

What To Know

Zenabis LTD, a wholly-owned subsidiary of Zenabis Global, said it entered into an agreement with High Park Holdings, a fully-owned subsidiary of Tilray. As part of the agreement, High Park will advance CA$30 million ($22.8 million USD) to Zenabis in return for a supply of dried cannabis.

Zenabis said it doesn't expect the new agreement to have any impact on existing customers.

See Also: The Secret Sauce Behind The Best Performing Cannabis ETF In Canada

Why It's Important

Zenabis CEO Andrew Grieve said the new agreement "significantly reduces" the potential for the company to withdraw capital from its $60 million unsecured convertible debenture facility. He also said the agreement validates its ability to produce consistent and premium cannabis products.

Zenabis will deliver each month dried cannabis to High Park with the first delivery scheduled for October. The prepaid amount will vary as it is dependent on the product type and format High Park orders.

Zenabis Global's Toronto-listed stock was higher by more than 10%, while Tilray shares traded lower by 2.6% to $48 at time of publication.

Need more cannabis news? Check out all of our coverage here.

Read more about our latest Cannabis News! CANNABIS HOME

Posted-In: Andrew Grieve High Park Holdings Zenabis GlobalCannabis News Contracts Markets Best of Benzinga

 

Related Articles (TLRY + ZBISF)

View Comments and Join the Discussion!

Cannabis Movers

Sign up for our secret cannabis newsletter!
Never miss out on the breaking news in the Cannabis Industry!

Trump Says Trade Talks With China Have Restarted; Chinese Premier Pledges Equal Treatment For Companies

Commentary: Will Facebook's New Cryptocurrency Be A Good Or Bad Thing?