PureSinse, a subsidiary of Pure Global Cannabis (TSX-V:PURE)(OTCPK:PRCNF), has struck a deal to buy 210 kilograms (210,000 grams, 463 pounds) of medical cannabis from The Supreme Cannabis Company (TSX-V:FIRE), a move to beef-up inventory ahead of the Toronto-based company going to market in the upcoming months.
Part of the cannabis is also earmarked for clinical research by PureSinse.
The purchase agreement follows news late in July that PureSinse signed definitive supply agreements with Supreme and two other licensed cannabis producers. Specific amounts of marijuana to be bought per these contracts were not disclosed.
PureSinse is a licensed producer under Canada's Access to Cannabis for Medical Purposes Regulations (ACMPR), but the company has taken the course less traveled with its business model. Instead of building grow facilities first, PureSinse focused its development plan on research and development, establishing sales, information technology and operational systems.
The plan is for PurseSinse to soon be selling an array of products from dried flower and cannabis oils to vape pens for medical and recreational markets. Employing this model, PureSinse says it can conserve resources and start generating cash flow more quickly than peers.
The company is also aiming to garner European Union Good Manufacturing Practice and ISO certifications early next year, as it looks to move into the international markets with its products. Pure Global has taken an aggressive stance on marketing and branding, earlier this month saying it spending $64,000 per month on a group of public relations, advertising, consulting and marketing firms.
Toronto-listed shares of PURE are down 5% in early trading on Tuesday, printing 28 cents on approximately 134,000 in volume. Shares FIRE are also moving south, hitting a new 52-week low at $1.26 and holding at $1.27 (-2.3%) as of about 10:30 in Toronto.
