Heritage will provide Sugarbud with extraction, formulation and production services in exchange for a minimum of 100,000 grams of dried cannabis per month
Holdings Corp () (OTCMKTS:HERTF) is teaming up with Calgary-based Sugarbud Craft Growers Corp (CVE:SUGR) on a new supply deal that will see the two companies collaborate to develop pre-filled vape cartridges.
Toronto-based Heritage will provide Sugarbud with extraction, formulation and production services to Sugarbud in exchange for a minimum of 100,000 grams of dried cannabis per month for a 24-month period beginning May 1, 2020.
The deal comes as Canada gets set to embark on new cannabis regulations this week, including the sale of edibles, infused beverages and other derivative products and formulations.
READ: Heritage Cannabis and Empower Clinics team up to produce CBD oils and formulations
Heritage CEO Clint Sharples told investors that the cannabis company is pleased to have an agreement in place with Sugarbud, which allows Heritage to work with them from the beginning to align their growth and strains with Heritage’s proprietary processes.
"Sugarbud joins the group of Licenced Growers supplying Heritage with high quality cannabis for our extraction needs,” Sharples said.
“As the market evolves, we believe quality will be the differentiating factor for the end user."
Heritage is a vertically integrated cannabis provider that provides extraction services through its subsidiary Purefarma Solutions.
It is also a licensed producer of cannabis through its subsidiaries Voyage Cannabis Corp and CannaCure Corp.
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