OrganiGram Holdings' (NASDAQ: OGI) stock is up notably in late-afternoon trading Thursday following the announcement of a new supply deal in its native Canada.
The deal was signed between the company and Medical Cannabis by Shoppers, the specialty e-shop run by Shoppers Drug Mart, a Toronto-based pharmacy chain operator. The agreement is in force for three years and can be renewed for another two. It obligates OrganiGram to supply the retailer with a variety of medical cannabis goods such as dried flower, oils, and derivative products.
OrganiGram did not provide the financial terms of the new arrangement. Loblaw Companies, the parent of Shoppers Drug Mart and by extension Medical Cannabis by Shoppers, has not issued an official statement on the deal.