Neptune Wellness Solutions Inc. (NASDAQ: NEPT) just announced that the company has entered into a definitive agreement with Tilray Inc. (NASDAQ: TLRY) to perform extraction and purification of cannabis and hemp biomass.
The agreement covers a specific minimum volume of biomass that is to be extracted by Neptune Wellness. Neptune will create extracts such as crude resin, winterized oil, and distillate extracts with the biomass provided by Tilray.
In the first year of extractions, it is expected that 25,000kg will be processed. The total in the first year represents 20% of the minimum 125,000kg of cannabis and hemp biomass that is to be extracted over a period of three years. Extractions could begin as soon as September of this year as the month holds the expected first delivery date of biomass at Neptune’s facility in Sherbrooke, Quebec.
Jim Hamilton, Chief Executive Officer of Neptune Wellness, stated: “We are thrilled to be working with Tilray, a globally recognized leader in cannabis. The size and length of this contract is a testament to the strength of our commercial, scientific and operations teams.”
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