- Sunniva’s
CP Logistics to produce ultra-purified extracts under Cannabis Strategic
Ventures’ Pure Organix™ brand
- Investment
banking firm Canaccord Genuity initiates coverage of Sunniva
- Canaccord
Genuity gives Sunniva positive share price valuation above current market
performance and a “speculative buy” rating
Vertically integrated cannabis company Sunniva Inc.
(CSE: SNN) (OTCQX: SNNVF) has announced an agreement to produce
top-quality cannabis extracts for Cannabis Strategic Ventures, Inc. (OTC: NUGS)
(http://ibn.fm/T49NL). Under
the white label services agreement, Sunniva’s CP Logistics (“CPL”) subsidiary
will produce ultra-purified cannabis extracts for the Pure Organix™ brand,
owned by Cannabis Strategic’s subsidiary, Pure Applied Sciences, Inc.
From its Sun-Oil Facility in Cathedral City, California, CPL
will extract cannabis oils for vape pen cartridges. Both companies expect that
additional products will follow. The agreement, signed for an initial 12 months,
will be open for extension.
Commenting in a news release on why his company chose
Sunniva for this deal, Cannabis Strategic CEO Simon Yu said, “We have selected
Sunniva because of its emphasis on creating great products for great brands… We
created the Pure Sciences brand based on premium quality and sound
manufacturing practices. Sunniva shares our values relative to the area and we
are pleased to have them as our manufacturer. We are especially impressed with
their plans to build greenhouse and extraction facilities compliant with
Current Good Manufacturing Practice (cGMP) standards.”
Sunniva CEO Tony Holler added, “As one of the highest
quality producers in the marketplace, we believe we are in an excellent
position to provide brand product manufacturing services for Cannabis
Strategic. Both of our firms share the vision of becoming leaders in providing
clean, medical grade cannabis products to consumers.”
This news comes on the heels of a recent announcement that
investment banking, wealth management and brokerage firm Canaccord Genuity has
initiated coverage on Sunniva. In its first report, the company, a leading
Canadian investment firm, gave Sunniva a “speculative buy” rating (http://ibn.fm/7mnuP).
In a comprehensive 51-page report created to inform clients
about investment prospects, Canaccord Genuity recommends a target price for
Sunniva of C$13.00 (US$9.84), well above current trading levels. The report,
titled “Bringing quality and scale to the world’s two largest cannabis
markets,” goes into detail about Sunniva’s operations in Canada and California,
drawing out points that will be of key importance to potential investors.
Canaccord Genuity predicts high growth for the cannabis
industry in California and Canada, Sunniva’s areas of operation. It highlights
Sunniva’s strategy of vertical integration as being key to its potential
success in the cannabis market, noting, “As one of only a limited number of
U.S. cannabis operators with access to public market capital, we believe the
company is well positioned to transition to a fully vertically integrated
operator by acquiring other areas of the value chain.”
The report mentions Sunniva’s current construction of a
large-scale state-of-the-art facility in Canada, as well as the fact that it
has entered a two-year deal with Canopy Growth Corp. (TSX: WEED) to supply
90,000 kg of cannabis. The agreement secures Sunniva a buyer for a large
portion of stock from its Canada campus as soon as it begins production.
For more information, visit the company’s website at www.sunniva.com
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