Entourage Health Announces Amendment to Key Supply Agreement
- Supply Agreement previously executed with HEXO Corp. is assigned to Aphria Inc., Tilray Brands, Inc.’s operating subsidiary for bulk cannabis biomass
- Amended Supply Agreement offers consistent premium cannabis to meet demand for Entourage products
TORONTO, Sept. 15, 2023 (GLOBE NEWSWIRE) — Entourage Health Corp. (TSX-V: ENTG) (OTCQX: ETRGF) (FSE:4WE) (“Entourage” or the “Company“), a Canadian producer and distributor of award-winning cannabis products, announced it has entered into an amended supply agreement (the “Supply Agreement”) with HEXO Corp. (“HEXO”). The amendments, amongst other things, extend the initial term of the agreement, securing Entourage’s ongoing access to high-quality bulk cannabis biomass for its product portfolio. The prices of all products supplied under the Supply Agreement are fixed but subject to limited and periodical adjustments depending on prevailing production costs.
The amended terms follow HEXO’s acquisition by Tilray Brands, Inc. (“Tilray”), prompting Entourage to shift its sourcing strategy, now obtaining bulk cannabis from Tilray cultivation sites as needed. Simultaneously, the obligations of HEXO under the Supply Agreement have been assigned to Aphria Inc., Tilray’s principal operating entity and license holder. Throughout this transition, Entourage has remained proactive, fostering continuous collaboration with Tilray to address all amendments. This effort represents a commitment to not only secure a consistent, high-quality cannabis supply but also to explore further opportunities.
“We take pride in the exceptional quality of our cannabis products,” remarked George Scorsis, CEO and Chair. “Our partnership with HEXO has consistently delivered impressive results. Moving ahead with Tilray, a highly respected company, we share a common goal – to develop a partnership deeply rooted in our promise to ensure our products continue to meet and exceed the highest standard of quality and satisfaction for our patients and consumers. We are excited to work together towards this shared objective with Tilray.”
About Entourage Health Corp.
Entourage Health Corp. is the publicly traded parent Company of Entourage Brands Corp., a licence holder producing and distributing cannabis products for both the medical and adult-use markets. The Company owns and operates a fully licensed 26,000 sq. ft. Aylmer, ON processing facility. With its Starseed Medicinal medical-centric brand, Entourage has expanded its multi-channelled distribution strategy. Starseed’s industry-first, exclusive partnership with LiUNA, the largest construction union in Canada, along with employers and union groups complements Entourage’s direct sales to medical patients. Entourage’s elite adult-use product portfolio includes Color Cannabis, Saturday Cannabis – and now Dime Bag and Syndicate – sold across eight provincial distribution agencies. Exclusive Canadian producer and distributor of award-winning U.S.-based wellness brand Mary’s Medicinals sold in both medical and adult-use channels. Under a collaboration with the Boston Beer Company, Entourage is also the exclusive distributor of cannabis-infused beverages ‘TeaPot’ in Canada. In addition, Entourage also entered into an exclusive agreement with Irwin Naturals, a renowned nutraceutical and herbal supplement formulator of popular branded wellness products sold across North America.
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Forward Looking Information This press release contains “forward-looking information” within the meaning of applicable Canadian securities legislation which are based upon Entourage’s current internal expectations, estimates, projections, assumptions and beliefs and views of future events. Forward-looking information can be identified using forward-looking terminology such as “expect”, “likely”, “may”, “will”, “should”, “intend”, “anticipate”, “potential”, “proposed”, “estimate” and other similar words, including negative and grammatical variations thereof, or statements that certain events or conditions “may”, “would” or “will” happen, or by discussions of strategy.
The forward-looking information in this news release is based upon the expectations, estimates, projections, assumptions, and views of future events which management believes to be reasonable in the circumstances. Forward-looking information includes estimates, plans, expectations, opinions, forecasts, projections, targets, guidance, or other statements that are not statements of fact. Forward-looking information necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; loss of markets; future legislative and regulatory developments; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; the cannabis industry in Canada generally; the ability of Entourage to implement its business strategies; competition; crop failure; and other risks.
Any forward-looking information speaks only as of the date on which it is made, and, except as required by law, Entourage does not undertake any obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise. New factors emerge from time to time, and it is not possible for Entourage to predict all such factors. When considering this forward-looking information, readers should keep in mind the risk factors and other cautionary statements in Entourage’s disclosure documents filed with the applicable Canadian securities’ regulatory authorities and available on SEDAR+ at www.sedarplus.ca. The risk factors and other factors noted in the disclosure documents could cause actual events or results to differ materially from those described in any forward-looking information.
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