Clever Leaves Holdings Inc. (NASDAQ:CLVR) announced an expansion of its relationship with Australian medical cannabis company Cannatrek Ltd. by signing a two-year, take-or-pay basis supply agreement. The deal includes high-THC flower from Portugal, while expanding on its existing partnership for various 10% and 20% CBD oral solutions from Colombia announced in 2020.
Licensed to distribute and sell to Australian medical cannabis patients, Cannatrek has been offering 10% and 20% CBD oral solutions supplied by Clever Leaves since 2020. Broadening the reach of both companies in Australia’s thriving market, Clever Leaves will now provide a strain of high-THC flower, to be sold and distributed through Australia’s medical cannabis prescription pathway, enhancing its proposition as a B2B supplier capable of providing both pharmaceutical extracted and dry flower products.
Over the term of the agreement, Cannatrek has committed to purchasing a minimum of $3.6 million, with the next shipment planned for March 2022.
“Australia is a key market for Clever Leaves in 2022. As the market matures and continues its rapid growth, we are thrilled to expand our relationship with Cannatrek, supplying industry-leading products to the market. Cannatrek’s commitment to the patient experience has continued to grow in the market, with a patient-first approach ensuring their market-leading position,”Andrés Fajardo, president of Clever Leaves stated. “Expanding our partnership will certainly help in addressing the country’s growing demand for safe, reliable, and most importantly, pharmaceutical-grade products."
Tommy Huppert, CEO of Cannatrek commented: “Cannatrek is rapidly expanding its distribution footprint in Australia with one of the largest arrays of medicinal cannabis products available in the Australian market today, and the strategic expansion of Clever Leaves product supply is fundamental to the growth of our local market and increasing patient choice. We pride ourselves as being patient-centric, ensuring both quality, price and service excellence in offerings to our patients, and we are thrilled to expand our exciting pipeline of new products with Cleaves Leaves.”
