One of the National Capital Region’s burgeoning pot producers has signed a lucrative deal to supply its concentrated cannabinoids in Brazil.
Gatineau-based LiveWell Canada (TSX-V:LVWL), which is converting a 550,000-sq-ft greenhouse in Ottawa’s rural south to a cannabis grow-op, announced this week that it has entered into a deal to supply a minimum 5,000 kilograms of isolated cannabidiol (CBD) annually to the South American market. At a value of US$7,000 per kilogram, the deal is worth at least US$35 million per year with renewal options for the next five years.
“We are seeing evidence of substantial demand in the CBD market. We are delighted to be able to announce our first CBD supply agreement in Brazil and we are in active discussions regarding the balance of our supply for 2019,” said LiveWell president David Rendimonti in a statement.
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The company notes in a release that CBD-based medication is increasingly being considered as a treatment for pain and various diseases.
LiveWell will extract the CBD from 1,000 acres of industrial hemp biomass in Canada that it acquired last week in a deal worth US$10 million. The firm said then that it expects to extract 25,000 kilograms of CBD from the acquired materials. The deal contains the option to purchase an additional 1,000 acres of biomass.
The cannabinoid company has found its footing on the public markets this summer, joining the TSX Venture exchange in June and ringing the market’s opening bell earlier this week. The firm’s shares are trading around $1.35 on the TSX-V Thursday.