In mid-December, Wayland Group (CSE:WAYL) (OTCQB:MRRCF) entered into a supply agreement with Ravenquest whereby Wayland will buy up to 8,000 kg of dried flower cannabis from RavenQuest in 2019. The cannabis will be shipped periodically throughout 2019 as it becomes available.
Ravenquest stock was at $0.33 in mid December, and has climbed steadily on the supply news to $0.54 today. It currently has cannabis production capacity of 11,000 kgs per year, and plans to build out to 50,000 kgs/year in the next two years.
Wayland will pay $2 million to RavenQuest in March 2019, in anticipation of the first major shipment of cannabis flower then. The full price will reflect prevailing wholesale cannabis prices.
“This is a significant win for both sides… said George Robinson, CEO of RavenQuest. “For RavenQuest, 8,000 kg represents about 80% of our estimated production for 2019, meaning this transaction provides us much more certainty when it comes to selling our 2019 production at competitive prices.”
Ben Ward, CEO of Wayland stated, “This agreement provides for efficiencies for both companies…We will…provide (RavenQuest’s) specialty indoor product to recreational cannabis consumers across Canada through our existing distribution network…At the same time, this allows us to channel our existing supply to the European market.”
The Wayland Group was previously known as Maricann Group. It is a vertically integrated cultivator and processor, founded in 2013 and based in Burlington, Ontario, and Munich, Germany. It has facilities in Langton, Ontario where it operates cannabis cultivation, extraction, formulation, and distribution business. Wayland also has production operations in Dresden, Germany; Regensdorf, Switzerland; Allesandria, Italy; Ibague, Colombia; London, UK and now Argentina.
RavenQuest BioMed Inc. is a diversified cannabis company with divisions in cannabis production, management services & consulting and specialized R&D. It is a licensed producer with facilities in Markham, Ontario and Edmonton, Alberta. It has a research partnership with Montreal’s McGill University focused upon cannabis cultivar (strain) recognition, plant stabilization and yield maximization. The company focuses on partnerships with Indigenous communities.
Source: Ravenquest press release