Neptune Wellness (NEPT.T) has entered into a supply agreement with Alberta Gaming, Liquor and Cannabis (AGLC), the wholesaler and sole online retailer for recreational cannabis in Alberta. The supply agreement will enable Neptune Wellness to sell and distribute Mood Ring™ products in Alberta.
“We are very pleased to announce this supply agreement and the upcoming launch of our Mood Ring products in the Alberta market. Alberta was the early leader in Canadian cannabis store rollout and combined with our previously announced agreements with British Columbia, Ontario and Quebec makes our high-quality and affordable cannabis products accessible to over 80 per cent of the Canadian cannabis market to date,” said Michael Cammarata, chief executive officer and president of Neptune.
No, we aren’t talking about the mood rings everyone was raving about back in the 2000s. Unlike conventional mood rings, Neptune Wellness’ Mood Ring™ products aren’t complete hogwash. The Company’s portfolio of Mood Ring™ products include High CBD Oil, Legacy Hashish, and High CBD Capsules. Furthermore, Mood Ring™ products are non-GMO and environmentally friendly packaged, demonstrating the Company’s commitment to sustainability and the environment. Both Mood Ring™ and PanHash™ products are produced using Neptune Wellness’ patented cold ethanol extraction process, which preserves terpenes to retain aroma and flavor.
This represents the fourth supply agreement that Neptune Wellness has established with a provincial cannabis wholesaler. With this in mind, the Company is able to sell its Mood Ring™ and PanHash™ brands at over 1,600 retailers across British Columbia, Ontario, Quebec, and now Alberta. Cumulatively, these four provinces accounted for 80% of Canadian cannabis sales in 2020.
Second only to Ontario, Alberta is one of Canada’s largest markets for adult-use cannabis products. With this in mind, Neptune Wellness’ latest supply agreement with Alberta will serve as a catalyst for the Company’s rapid growth in the highly competitive recreational cannabis market. Neptune Wellness’ products are expected to be available this summer through more than 600 licensed private retailers in Alberta and online.
In the last three months, Neptune Wellness’ stock has remained stagnant, seeing mild fluctuations and no significant growth. Compared to the beginning of the year, the Company’s trade volume has seen a notable decrease, however, the latest news seems to have lit a fire in some investors. Currently, Neptune Wellness is experiencing the most growth it has seen this month following the announcement of its latest supply agreement with the AGLC.
Neptune Wellness’ share price opened at $1.65 today and quickly reached a high of $1.95. The Company is currently trading at $1.81 as of 12:44PM ET and is up 9.04% indicating that there has been significant change following the news.