Organigram Holdings Inc. (NASDAQ: OGI) (TSX: OGI), ( “Organigram”), a leading Canadian licensed producer of cannabis, and Canndoc Ltd. (“Canndoc”), a subsidiary of InterCure Ltd. (NASDAQ: INCR) (TSX:INCR.U) (TASE:INCR) (dba Canndoc) Israel’s largest and most established pharmaceutical cannabis producer, today jointly announced that they have entered into a new multi-year agreement (the “New Strategic Agreement”) for Organigram to continue supply of dried flower to InterCure.
Organigram and InterCure entered into a previous strategic supply agreement in June 2020, (the “First Strategic Agreement”) that contemplated a minimum supply of 3,000 kg all of which has been fulfilled. The New Strategic Agreement contemplates up to 20,000 kg to be supplied to InterCure’s international supply chain. Specifically, the New Strategic Agreement provides for a commitment of 10,000kg with an option for Canndoc to elect to order up to an additional 10,000kg from Organigram during the three-year term (the “Term”). Approximately 2,800 kg has already been delivered to Canndoc from Organigram since July 2022 and credited against the total volume commitment under the New Strategic Agreement.
Based on the success of the First Strategic Agreement and the desire of the parties to continue to collaborate and grow their businesses, the New Strategic Agreement was entered into. Subject to the terms and conditions of the New Strategic Agreement, Organigram has agreed to exclusively supply InterCure in Israel for the Term. Additionally, the parties agreed on certain popular genetics which will be exclusively supplied for distribution into InterCure’s international supply chain, subject to local regulations.
“Our business with InterCure, a leader in pharmaceutical grade cannabis, has been mutually beneficial and we are excited to expand the relationship going forward,” said Beena Goldenberg, Chief Executive Officer of Organigram. “This new Strategic agreement envisions a significantly greater amount of dried flower to be shipped from Organigram to Canndoc and allows us to collaborate in the future on other emerging medical cannabis markets in European jurisdictions.”
“Establishing exclusive long term strategic partnerships with world-class partners supports our international expansion plans and profitable growth strategy,” says Alex Rabinovitch, CEO, InterCure. “We are proud to expand our long and fruitful partnership with Organigram, a pioneering multinational operator which shares our commitment of providing the highest quality pharmaceutical grade medical cannabis products to patients around the globe.”
interActivities under the New Strategic Agreement are subject to compliance with all applicable laws, including receipt of all requisite approvals and permits for each proposed shipment from all applicable regulatory authorities including the Israeli Ministry of Health and Health Canada.