CannaPharmaRx Signs Supply Agreement with Y.S.A Holdings for up to $15 Million Annually of Commercial Cannabis

Rhea-AI Summary

CannaPharmaRx (CPMD) announced a 24-month Supply Agreement with Israeli firm Y.S.A Holdings. Under this deal, CannaPharmaRx will cultivate cannabis in Canada and supply a minimum of 400kg annually to YSA for sales in Israel and Morocco, with potential revenues ranging from $6 million to $15 million per year. Deliveries are expected to start in Q3, with purchase orders occurring up to four times a year. This agreement is part of CannaPharmaRx's strategy to build an international brand featuring up to 15 cannabis strains from its exclusive inventory.

Positive

• Supply Agreement with YSA Holdings could generate $6 million to $15 million annually.
• Initial contract for 24 months guarantees a minimum annual supply of 400kg per country.
• Potential for expanding customer base and distribution in international markets.

Negative

• None.

CALGARY, AB / ACCESSWIRE / March 30, 2023 / CannaPharmaRx, Inc. (OTC PINK:CPMD), a future leader in ultramodern, highly efficient cannabis production facilities announced today that it has signed a Supply Agreement with Israeli company Y.S.A Holdings ("YSA"). 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.

About CannapharmaRx, Inc.

CannapharmaRx is focused on the acquisition and development of state-of-the-art cannabis grow facilities in Canada. CPMD is in discussion with other companies regarding potential acquisitions. CannapharmaRx's business strategy is to become a leader in high quality and low-cost production of cannabis through the development, acquisition, and enhancement of existing facilities. CannapharmaRx is committed to operating high-quality facilities utilizing the latest technology in combined heat and power generation to ensure being a low-cost producer of cannabis.

Safe Harbor Statement

Cautionary Note Regarding Forward-Looking Information or Statements

This press release contains forward-looking information or statements. All statements that are or information which is not historical facts, including without limitation, statements regarding future estimates, plans, programs, forecasts, projections, objectives, assumptions, expectations, or beliefs of future performance, are 'forward-looking information or statements.' Forward-looking information or statements can be identified by the use of words such as 'plans,' 'expects,' or 'does not expect,' 'is expected,' 'estimates,' 'intends,' 'anticipates,' or 'does not anticipate,' or 'believes,' or variations of such words and phrases or statements that certain actions, events or results 'may,' 'could,' 'would,' 'might' or 'will' be taken, occur or be achieved. With respect to forward-looking information and statements contained herein, Management of CannapharmaRx has made numerous assumptions, including, among other things, assumptions about general business and economic conditions. Such forward-looking statements are based on assumptions and involve known and unknown risks, uncertainties, and other factors that may cause actual results, events, or developments to be materially different from any future results, events, or developments expressed or implied by such forward-looking information or statements. Readers are cautioned not to place undue reliance on such forward-looking information or statements. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in forward-looking information or statements. CannapharmaRx assumes no obligation to update any forward-looking information or statements, even if new information becomes available as a result of future events, new information, or for any other reason except as required by law.

Contact Information:
Brokers and Analysts:
Chesapeake Group
(410) 825-3930

SOURCE: CannaPharmaRx

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https://www.accesswire.com/746599/CannaPharmaRx-Signs-Supply-Agreement-with-YSA-Holdings-for-up-to-15-Million-Annually-of-Commercial-Cannabis

FAQ

What is the Supply Agreement between CannaPharmaRx and YSA Holdings?

CannaPharmaRx has signed a Supply Agreement to cultivate cannabis in Canada and supply a minimum of 400kg annually to YSA Holdings for sales in Israel and Morocco.

How much revenue can CannaPharmaRx expect from the new agreement?

The anticipated revenue from the Supply Agreement is between $6 million and $15 million annually, depending on the quantity and timing of orders.

When will deliveries under the Supply Agreement commence?

Deliveries are expected to begin in the third quarter (Q3) of the year.

How long is the Supply Agreement with YSA Holdings?

The Supply Agreement is initially for 24 months and can automatically renew for additional 24-month periods.