Pure Extracts (PULL.C) announced today that it has entered into a medical supply agreement with Canada House Wellness Group. Under the terms of the agreement, Canada House’s wholly owned subsidiary, Abba Medix, will purchase Pure Extracts’ full line of concentrate products.
“This agreement marks our entry into the medical cannabis space, which will make a significant revenue contribution starting in Q4 and ramping up in 2022. Abba’s extensive military and medical customer base, along with their popular on-line portal, allows us to quickly and efficiently get our outstanding line of full-spectrum oil (FSO) CBD and THC vape products and our blister-packaged gummy products, including our ultrahigh-potency 100-milligram CBD chews, to their patients across Canada,” said Pure Extracts’ chief executive officer, Ben Nikolaevsky.
Canada House acquired Abba Medix in 2016 with the sole intention of producing medical cannabis for its Veteran patient base. With this in mind, Abba Medix is recognized for its premium quality, Canadian handcrafted medical cannabis products for all its patients seeking safe solutions for their common to complex health and wellness needs. On June 15, 2021, Abba Medix surpassed 900 active medical patient registrations, marking a 50% increase since January 2021, with more than 60% of Abba’s patients being Veterans.
Canada House credits its recent growth to the company’s recent acquisition of Margaree Health Group and Abba Medix recent exclusive medical supply agreement with Montreal Cannabis. Margaree services over 350 Veterans in Nova Scotia, which would undoubtedly influence the company’s accelerated patient growth in the last 6 months. Furthermore, Canada House’s exclusive agreement with Montreal Cannabis has expanded the company’s product offering with additions like Sage n’ Sour, Cookies N’ Cream and Candyland cannabis products.
Similarly, Canada House’s latest medical supply agreement with Pure Extracts will add a variety of products to the company’s portfolio. This includes the Company’s full line of concentrate products, including CBD, THC and blended vapes as well as CBD and THC gummies.
“We are excited to work with Pure Extracts and add their high-quality products to Abba’s extensive portfolio of medical products. Pure has established itself as one of the premier brands in the country and being able to onboard quality products like this aligns squarely with CHV’s strategy of offering the highest quality medical cannabis products to our registered patients, particularly the Veteran community,” commented Chris Churchill-Smith, Canada House CEO.
According to Market Data Forecast, the global medical cannabis market was predicted to reach USD$16.47 billion by 2021. Additionally, this market is expected to grow to a value of $46.18 billion in 2026, indicating a rapid CAGR of 22.9% during the forecast period. With this in mind, Pure Extract’s latest news represents a major milestone for the Company. Having entered into a medical supply agreement with Canada House, Pure Extracts now has access to the lucrative medical cannabis market through Abba Medix.
Pure Extracts’ share opened at $0.245. The Company’s shares are down -4.08% and are currently trading at $0.235 as of 10:44AM ET.