The Latin American subsidiary of Ontario-based Canopy Growth Corporation (TSX:WEED, NYSE:CGC) has inked a regional supply deal with Clever Leaves, a Colombia licensed producer of pharmaceutical-grade cannabis and hemp extracts.
Under the terms of the agreement, Clever Leaves will supply Canopy LATAM with extracted products from its GMP-certified, licensed cannabis processing system and cultivation sites in Colombia. Clever Leaves has delivered the first of these products to Canopy Growth under the terms of the one-year agreement, which includes an option to renew for two additional years.
The move may be a template for other companies wanting to enter the Latin American market whilst maintaining an asset-light model in their expansion.
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“Clever Leaves has proven its capabilities in Colombia and through this supply agreement, Canopy LATAM is furthering the implementation of its asset-light model and accelerating time to market with regionally produced GMP-certified medical cannabis products,” said Antonio Droghetti, Managing Director, Canopy LATAM.
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