Cannabis Global Enters Into Supply Agreement For ‘Fresh Frozen’ Cannabis With Sugarmade
“This helps us to meet the substantial demand we are experiencing”
Cannabis Global, Inc. entered into a supply agreement to solidify the company’s position in the solventless cannabis product sector. Under the terms of the agreement, Sugarmade, Inc. will cultivate cannabis specifically for Cannabis Global. The initial contract calls for the supply of 25,000 pounds of “Fresh Frozen” cannabis, which will be cultivated specifically to Cannabis Global’s specifications.
Fresh Frozen cannabis is immediately flash frozen upon harvest – instead of the traditional treatment of drying and curing after harvest.
“This Agreement serves several very important purposes,” stated CEO Arman Tabatabaei. “By contracting with Sugarmade we will be able to specify exactly the strains and cultivation parameters that will enable us to produce the finest hash and rosin products for our customers. By locking in a $28 per pound future price, compared to the current spot price well in excess of $100 per pound, we expect our margins to be meaningfully enhanced. Perhaps even more importantly, having a steady supply of premium Fresh Frozen cannabis will allow us to provide consistency in our products and to ensure an adequate supply of products will be available to our very fast growing base of retail customers. As we have recently announced, our retail base and our revenues are ramping quickly. This Agreement helps us to meet the substantial demand we are experiencing.”
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