CannaPharmaRx Signs Supply Agreement With Y.S.A For Up To $15M Annually Of Commercial Cannabis

CannaPharmaRx, Inc. CPMD has signed a supply agreement with Israeli company Y.S.A Holdings. The business arrangement sets forth a supply agreement between the two companies.

Under the terms of the agreement, CannaPharmaRx will cultivate commercial cannabis at its facility in Canada and supply YSA Group material for the sole purpose of selling finished product in Israel and Morocco. The agreement shall initially be for 24 months and automatically renews for periods of 24 months each.

YSA will buy from CannaPharmaRX a minimum of 400kg of material per annum per each country comprising the territory during the term. It is anticipated that purchase orders will be between 400kg and 1000kg and occur as often as four times annually. Deliveries are anticipated to begin in Q3 quarter. anticipated revenues can be between $6 - $15 million on a yearly basis depending on quantity and timing.

"In accordance with the company's model, we are building an international brand for our product. For this agreement, the brand will contain up to fifteen strains from the large pool of CannapharmaRX's exclusive inventory. This is an important agreement for us as YSA's CEO has significant experience in this industry and specifically in the international marketplace. Until recently he was the CEO of Teva Adir, one of the original and leading cannabis companies in Israel and currently advises the Moroccan government on the regulation issues required to market cannabis in the field. We continue to grow our customers and distribution across the globe," stated Nick Colvin, CEO of CannaPharmaRx.

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Photo: Benzinga edit with photos by jarmoluk and lindsayfox on Pixabay

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