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The SAQ secures cannabis supplies for the future société québécoise du cannabis

Montreal, April 11, 2018 – On November 16 of last year, the Quebec government tabled Bill 157, which mandates the Société des alcools du Québec (SAQ) to set up the future Société québécoise du cannabis (SQDC). Today, the SAQ announces that it has signed agreements with six suppliers to secure the supply of cannabis for the SQDC. The agreements are, of course, conditional on the adoption of the necessary regulatory framework by the federal and provincial governments.

The agreements come after the signing of letters of intent with the same six producers, all of which have been authorized by Health Canada to operate in the field of medical cannabis production and are well established in the industry. To comply with the time lines to be set by the government and have a high-quality, predictable supply of material in a market with a limited legal production capacity, securing the supply was seen as a priority for the future SQDC if it is to fulfill the mission it will be given.

Companies that have signed a supply agreement and quantities for the first year :

  • Hydropothicaire (20,000 Kg)
  • Canopy Growth (12,000 Kg)
  • MedReleaf (8,000 Kg)
  • Aphria (8,000 Kg)
  • Aurora Cannabis (5,000 Kg)
  • High Park (Tilray) (5,000 Kg)

These supply agreements meet the needs forecasts for the first round of planned SQDC point-of-sale openings. Other calls for tenders may be issued for subsequent phases of the SQDC’s development.

For future agreements, the SQDC will continue studying the origin of its supplies so priority can be given to producers located in Quebec. Currently, three of the six companies with which the SQDC will do business have operations in Quebec. Calls for tenders will continue to be issued as allowed by intergovernmental and international trade agreements signed by Quebec or to which it is deemed bound under the Act respecting the Ministère des Relations internationales.