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Neptune Wellness Solutions thrilled at Tilray extraction agreement

Neptune's wholly owned subsidiary is licensed by Health Canada to process cannabis at its 50,000-square-foot facility
Cannabis plant
Both companies are involved in the cannabis industry

Neptune Wellness Solutions (CVE:NTB) (NASDAQ:NEPT) says it's delighted to be working with cannabis firm Tilray Inc (NASDAQ:TLRY) after it struck a multi-year extraction agreement with the latter.

The health company's wholly owned subsidiary is licensed by Health Canada to process cannabis at its 50,000-square-foot facility located in Sherbooke, Quebec, and will receive cannabis and hemp biomass from Tilray, with which it will create various extracts.

A testament to strength

"We are thrilled to be working with Tilray, a globally recognized leader in cannabis. The size and length of this contract is a testament to the strength of our commercial, scientific and operations teams." said Jim Hamilton, CEO at Neptune.

The minimum amount of biomass to be processed over the three year term is 125,000 kg, of which the first year is expected to represent 20% of total volumes.

Neptune expects to receive its first shipment in September this year.

READ: Tilray unlikely to provide positive earnings until 2020, says Roth analyst

As well as making products for the Canadian and global cannabis markets. Neptune develops and commercializes turnkey nutrition solutions and patented ingredients such as MaxSimil and of a variety of marine and seed oils.

Neptune Wellness shares in Canada zoomed up over 13% on the day to $6.05 each 

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