ROSE enters into a sale, supply, distribution and marketing agreement with High Park, as its exclusive partner in Québec.
HUNTINGDON, QC, Dec. 14, 2018 /CNW Telbec/ - Québec cannabis producer, ROSE LifeScience Inc. ("ROSE") today announced an investment from Tilray, Inc. (NASDAQ:TLRY), a global pioneer in cannabis production and distribution; as well as an exclusive sale, supply, distribution and marketing agreement with High Park Farms Ltd. ("High Park"), a wholly owned subsidiary of Tilray.
Tilray will subscribe for 41 Class "A" Common shares (12%) in the capital of ROSE for a subscription amount of C$7.5 million pursuant to a subscription agreement (the "Subscription Agreement"). At the time of closing of this subscription the only issued and outstanding equity of ROSE will be 344 Class "A" Common shares and there will be no outstanding options, warrants or other rights to acquire equity of ROSE.
In connection with the subscription agreement, High Park and ROSE have entered into an exclusive sale, supply, distribution and marketing agreement to deliver High Park adult-use cannabis products in Québec including existing brand, Dubon™, which is exclusively available in Québec through the Société québécoise du cannabis (SQDC). The two companies may also collaborate on additional co-branded adult-use cannabis products or brands exclusively for this market.
Tilray's investment in ROSE represents a commitment to increase supply to the Québec market and the opportunity to deliver consumers locally-grown high quality products. ROSE is in the process of completing construction of a 54,000 square-foot cannabis cultivation facility on its land in Huntington, Québec and has applied for a Health Canada cultivation, processing and sales license. Once fully-licensed, ROSE will exclusively supply High Park's adult-use cannabis products in the Québec market.
"This partnership accelerates our plans to improve Québec's position in the worldwide cannabis market. We are extremely proud to be working with a medically-focused global leader in the cannabis industry, and look forward to jointly improving Québec's safe and legal adult-use cannabis market" says Francois Limoges, cofounder and Chief Marketing Officer, ROSE LifeScience Inc.
This investment accelerates ROSE's previously announced plans to inject over C$80M into the province, including its planned 100,000 square foot phase II expansion, as well as contributing to the creation of hundreds of new jobs in Huntingdon Québec - a town historically hard hit by the exodus of manufacturing jobs.
As a private Québec company, founded by a group of seasoned executives with extensive experience in highly regulated industries, ROSE LifeScience is committed to ensuring that Québec benefits from the responsible production, sale and use of cannabis. ROSE LifeScience's cannabis and derivatives will be of the highest quality, while offering affordable products due to Québec's attractive cost environment.
Tilray is a global pioneer in the research, cultivation, production and distribution of cannabis and cannabinoids currently serving tens of thousands of patients in twelve countries spanning five continents.
About High Park™
Based in Toronto and led by a team with deep experience in cannabis and global consumer brands, High Park was established to develop, produce, sell, and distribute a broad-based portfolio of adult-use cannabis brands and products. High Park is a wholly-owned subsidiary of Tilray, Inc., a global leader in cannabis cultivation, processing, and distribution.
SOURCE ROSE LifeScience
For further information: Marc Snyder, [email protected], Cell.: 514 244-5228