CALGARY, AB / ACCESSWIRE / August 24, 2022 / CannaPharmaRx, Inc. (OTC PINK:CPMD), a future leader in ultramodern, highly efficient cannabis production facilities announced today that it has signed a Memorandum of Understanding (MOU) with Israeli company Spring Medical Group Ltd. and its affiliates in Israel. The agreement sets forth a supply agreement and business collaboration between the two entities.
Under the terms of the agreement CannaPharmaRx will cultivate commercial cannabis at its Cremona Facility in Canada and Spring Medical Group will purchase the product for international distribution. The agreement shall be for three (3) years and allows Spring the right to purchase up to 3,000kg of the product produced by CannaPharmaRx at the Production Facility for the duration of the term. The offtake agreement secures a market and revenue stream for CannapharmaRx and provides future output to Spring at defined price points. Production and delivery is expected to begin during 2022. Upon the contract being fulfilled to its maximum value, revenue will be between $8 - $12 million depending on quantity and order timing discounts.
"As we finalize the beginning of production at the Cremona Facility, we now have customers and distribution across the globe," commented Nick Colvin, CEO of CannaPharmaRx.
About Spring Medical Group
Spring Medical Group is a wholesaler in medicinal products and narcotics, dried prescription drugs, including dried products containing trans-tetrahydrocannabinol (THC) and cannabinoids (so called medical cannabis), as well as mono extracts and full extracts containing trans-tetrahydrocannabinol (THC) and cannabinoids (so called medical cannabis) and other medicinal products and pharmaceutical raw materials for pharmacy prescription in Europe and in Israel. Backed by an experienced and knowledgeable management team and staff, Spring Medical Group is well-positioned to register and distribute cannabis products throughout Israel and Europe.
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.
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