AgraFlora Organics Ties Up Gateway Supply Deal

AgraFlora Organics International Inc.  has secured a deal to supply 200 Gateway Newstand outlets across Canada with hemp-derived CBD products.

Gateway’s brick-and-mortar locations are located in high-traffic urban centres, including key train stations, office towers, shopping malls, hospitals, casinos, and lottery kiosks. It has now awarded AgraFlora approved supplier status after previously putting in an initial purchase order to supply a suite of hemp-derived consumer packaged goods.

AgraFlora products will now go on sale imminently at newsstands across the country.

“Gateway is an ideal partner throughout our pursuit to achieve significant shelf space, due to their broad target audience, notable brand recognition, and diverse brick and mortar footprint,” said Brandon Boddy, chairman and chief executive at AgraFlora.

There is also talk of Gateway and AgraFlora collaborating to produce a portfolio of CBD-infused products within eligible jurisdictions.

AgraFlora has a greenhouse in Delta, British Columbia, which should be operational by 2020. It will eventually have the capacity have the capacity to produce 250,000 kg of cannabis per year, which would make AgraFlora one of largest producers in Canada, but it has a market cap of just $208.5 million.

AGRA began the year at $0.28 and it reached $0.79 by March, but it has since decreased significantly and it opened at $0.24 today. Management has consistently argued that it is undervalued given its potential, but the market has not really reacted to those claims.

It has just spent a further $3 million on upgrades at the facility and confirmed that capacity will reach 250,000 kg next year. It said that will leave it behind only Aurora, Canopy, and Aphria, and ahead of Tilray as the fourth largest producer in Canada.

Earlier this month, AgraFlora shed some light on a number of high-CBD lines it is producing at a campus in Kent County, New Brunswick, and its Winnipeg Edibles Facility ahead of edibles and other concentrates being legalized this month.

The Winnipeg facility is producing gummies, baked goods, flavoured tinctures, cannabis-infused honey, and maple syrup, vegetable puree-based snacks and even CBD-infused pet products.

The opinions provided in this article are those of the author and do not constitute investment advice. Readers should assume that the author and/or employees of Capital 10X hold positions in the company or companies mentioned in the article. For more information, please see our Content Disclaimer.

Martin Green
Martin Green is an experienced journalist with a strong focus on the cannabis, alcohol, and gambling industries. He is particularly interested in the political issues affecting the global marijuana trade, and he has a keen focus on regulation changes and legal topics. He holds a BA English Literature, MA Creative Writing and a National Qualification in Journalism diploma. He has worked in journalism since 2009 and written for a broad range of newspapers, business titles and magazines, including The Sun, The Metro, The Journal, Livestrong, Drinks Retailing News, Harpers, Sportsbook Review, Vital Football, Essex Live and Surrey Live. Address: 682 Indian Road, Toronto, Ontario, M6P 2C9. Phone: 416-721-8257.

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