Organigram secures United Kingdom cannabis supply deal

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Canadian licensed producer Organigram Holdings has struck a supply agreement with 4C Labs to provide dried medical cannabis flower for the United Kingdom market.

The deal’s value was not disclosed.

According to a news release, Toronto-based Organigram expects to supply about 600 kilograms (1,323 pounds) of dried flower within the first year of the deal to 4C Labs, a vertically integrated medical cannabis cultivator and digital health care provider based in Britain.

Organigram also is granting 4C Labs strain exclusivity within the United Kingdom and the Channel Islands.

The exclusivity clause is active for as long as minimum purchase commitments are satisfied.

The minimum purchase commitments were not detailed in the news release.

“Medical cannabis has been legal in the U.K. since 2018. However, due to significant energy cost premiums compared to Canada, access to consistent, high-quality products in this market is limited, making importing medical cannabis an attractive option for this growing market,” Organigram CEO Beena Goldenberg said in a statement.

In a recent regulatory filing, Organigram said it expects to achieve higher international revenue thanks to:

  • A multiyear supply agreement with Canndoc in Israel.
  • Continued shipments to Medcan and Cannatrek in Australia.
  • New international shipments to Germany via a new supply agreement with Sanity Group.

Through the first nine months of the fiscal year, Organigram’s sales from international flower and oil were 18.4 million Canadian dollars ($13.4 million), up from about CA$9.2 million in the same period last year.

Shares of Organigram trade as OGI on the Nasdaq and Toronto Stock Exchange.