AgraFlora Organics Enters Into Preferred Supply Agreement with Distributor to Loblaws and Metro Supermarkets
Press Release
Vancouver British Columbia / November 20th 2019 – AgraFlora Organics International Inc. (“AgraFlora” or the “Company”) (CSE: AGRA) (Frankfurt: PU31) (OTCPK: AGFAF) a growth oriented and diversified international cannabis company is pleased to announce the Company has entered into a preferred supply agreement (the “Supply Agreement”) with Canadian consumer packaged goods (“CPGs”) broker and wholesaler Red Phoenix International Trading Ltd. (“RPI”).
Under the terms of the Supply Agreement RPI will distribute AgraFlora’s portfolio of organic cannabis sativa seed oil infused CPGs including its Whole Hemp Health (“WHH”) organic lip balm as well as its Edibles & Infusions hemp-derived gummy stock-keeping units (“SKUs”) to domestic big box food retailers. RPI boasts wholesale distribution agreements with the following Tier 1 Canadian food retailers:
- Loblaws Inc.;
- Metro Inc.;
- Sobeys Inc.;
- The North West Company; and
- Giant Tiger Stores Ltd.
The Company forecasts its Supply Agreement with RPI will accelerate its stock turn and sell-through metrics of associated organic cannabis sativa seed oil infused CPGs by a factor of three. Additionally the Supply Agreement will augment AgraFlora’s pursuit to secure a critical mass of high visibility shelf space whilst familiarizing consumers with its premium suite of cannabis 2.0 SKUs.
Brandon Boddy Chairman and Chief Executive Officer of AgraFlora stated: “Our Supply Agreement with RPI communicates to the domestic marketplace that we have formulated a highly vendible suite of organic cannabis sativa seed oil infused CPGs. The Company’s quest to capture defendable high visibility shelf space is derived from our internal thesis that within the cannabis 2.0 arena consumers will gravitate towards recognizable brands located on the shelves of trusted big box food retailers and c-stores.
Substantiated by ongoing discourse with industry experts and relevant policy makers we remain optimistic that Health Canada’s anticipated cannabidiol regulations will classify CBD as a natural health product enabling widespread proliferation across Canada and unlocking hidden value within Agraflora’s cannabis value chain. Upon enactment of these anticipated CBD regulations we will look to introduce CBD-infused varieties of our existing SKUs into our already mature distribution channels. Our product strategy is centred on the delivery of CBD-based solutions to already primed targeted audiences which are both known and trusted across our entire distribution footprint. As CBD continues its ubiquitous permeation of CPGs we remain well equipped to capitalize on a shifting regulatory environment while capturing material market share of Canada’s adult-use arena.”
About AgraFlora Organics International Inc.
AgraFlora Organics International Inc. is a growth oriented and diversified company focused on the international cannabis industry. It owns an indoor cultivation operation in London ON and is a joint venture partner in Propagation Service Canada and its large-scale 2200000 sq. ft. greenhouse complex in Delta BC. The Company has a successful record of creating shareholder value and is actively pursuing other opportunities within the cannabis industry. For more information please visit: www.agraflora.com.
ON BEHALF OF THE BOARD OF DIRECTORS
Brandon Boddy
Chairman & CEO
T: (604) 682-2928
For additional information:
AgraFlora Organics International Inc.
Tim McNulty
E: ir@agraflora.com
T: (800) 783-6056
For French inquiries:
Remy Scalabrini Maricom Inc.
E: rs@maricom.ca
T: (888) 585-MARI
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