- Sunniva’s CP Logistics to produce ultra-purified extracts under Cannabis Strategic Ventures’ Pure Organix™ brand
- Investment banking firm Canaccord Genuity initiates coverage of Sunniva
- Canaccord Genuity gives Sunniva positive share price valuation above current market performance and a “speculative buy” rating
Vertically integrated cannabis company Sunniva Inc. (CSE: SNN) (OTCQX: SNNVF) has announced an agreement to produce top-quality cannabis extracts for Cannabis Strategic Ventures, Inc. (OTC: NUGS) (http://cnw.fm/B3aVh). Under the white label services agreement, Sunniva’s CP Logistics (“CPL”) subsidiary will produce ultra-purified cannabis extracts for the Pure Organix™ brand, owned by Cannabis Strategic’s subsidiary, Pure Applied Sciences, Inc.
From its Sun-Oil Facility in Cathedral City, California, CPL will extract cannabis oils for vape pen cartridges. Both companies expect that additional products will follow. The agreement, signed for an initial 12 months, will be open for extension.
Commenting in a news release on why his company chose Sunniva for this deal, Cannabis Strategic CEO Simon Yu said, “We have selected Sunniva because of its emphasis on creating great products for great brands… We created the Pure Sciences brand based on premium quality and sound manufacturing practices. Sunniva shares our values relative to the area and we are pleased to have them as our manufacturer. We are especially impressed with their plans to build greenhouse and extraction facilities compliant with Current Good Manufacturing Practice (cGMP) standards.”
Sunniva CEO Tony Holler added, “As one of the highest quality producers in the marketplace, we believe we are in an excellent position to provide brand product manufacturing services for Cannabis Strategic. Both of our firms share the vision of becoming leaders in providing clean, medical grade cannabis products to consumers.”
This news comes on the heels of a recent announcement that investment banking, wealth management and brokerage firm Canaccord Genuity has initiated coverage on Sunniva. In its first report, the company, a leading Canadian investment firm, gave Sunniva a “speculative buy” rating (http://cnw.fm/HtE06).
In a comprehensive 51-page report created to inform clients about investment prospects, Canaccord Genuity recommends a target price for Sunniva of C$13.00 (US$9.84), well above current trading levels. The report, titled “Bringing quality and scale to the world’s two largest cannabis markets,” goes into detail about Sunniva’s operations in Canada and California, drawing out points that will be of key importance to potential investors.
Canaccord Genuity predicts high growth for the cannabis industry in California and Canada, Sunniva’s areas of operation. It highlights Sunniva’s strategy of vertical integration as being key to its potential success in the cannabis market, noting, “As one of only a limited number of U.S. cannabis operators with access to public market capital, we believe the company is well positioned to transition to a fully vertically integrated operator by acquiring other areas of the value chain.”
The report mentions Sunniva’s current construction of a large-scale state-of-the-art facility in Canada, as well as the fact that it has entered a two-year deal with Canopy Growth Corp. (TSX: WEED) to supply 90,000 kg of cannabis. The agreement secures Sunniva a buyer for a large portion of stock from its Canada campus as soon as it begins production.
For more information, visit the company’s website at www.sunniva.com
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