Tilray Enters Letter of Intent to Purchase CBD Isolates from LiveWell Canada Inc.
Tilray, Inc. (NASDAQ: TLRY) announced on December 17th the terms to the new binding letter of intent that the company has officially entered into with LiveWell Canada Inc. to purchase cannabidiol (CBD) isolates. The isolates that Tilray will purchase from LiveWell Canada are derived from hemp plants that are sourced from the United States and Canada. The first deliveries of CBD isolates are expected to be completed sometime in the second month of 2019.
The Farm Bill that is expected to reclassify hemp within the U.S. to an “agricultural commodity” will lift the restriction on a market that is estimated to reach $22 billion. Apart from the United States, Canada allows for the use of CBD that is cultivated and processed out of hemp and even subjects the finished CBD products to quality requirements.
Brendan Kennedy, Tilray’s Chief Executive Officer said: Today’s announcement puts Tilray in a strong position to expand the availability of our products in existing and new potential markets. We’re pleased about the opportunity to increase our capacity to supply high-demand CBD products in Canada.