Supreme Pharmaceuticals Inc (CVE:SL) is set to ink a deal that will see it extend its previously announced diversification to encompass a business-to-business model.
It has agreed in principle to supply a Canadian licensed producer with multiple premium cannabis cultivars for production by the licensed producer, subject to obtaining applicable regulatory approvals, execution of definitive agreements and other customary closing conditions.
If all goes well, the transaction should complete within the next 60 days.
"Last month, we announced the commencement of our business-to-business sales model by entering into letters of intent for the sale of dried marijuana to five fully licensed Canadian licensed producers. Today marks the commencement of the second leg of our business: supply of high-quality cannabis genetics to other licensed producers,” said John Fowler, chief executive officer of Supreme.
“The genetics business diversifies our revenue while remaining committed to supporting the aggregate growth of the legal cannabis industry in Canada," Fowler added.
Shares in Supreme were unchanged on the news.