June 7, 2019, 6:40 a.m. EDT

Neptune Wellness signs 3-year extraction, purification deal with cannabis company Tilray

Neptune Wellness Solutions Inc. (NAS:NEPT) (TSE:CA:NEPT) announced Friday an agreement with cannabis company Tilray Inc. (NAS:TLRY) to provide extraction and purification services. Under terms of the three-year agreement, Neptune will receive a minimum volume of 125,000 kilograms of cannabis and hemp biomass to be processed, with the first year expected to represent one-fifth of total volumes. The first shipment is expected to be received in September 2019. "We are thrilled to be working with Tilray, a globally recognized leader in cannabis," said Neptune Chief Executive Jim Hamilton. "The size and length of this contract is a testament to the strength of our commercial, scientific and operations teams." Neptune's stock, which was still inactive in premarket trade, has run up 56% year to date, while Tilray shares have tumbled 49% and the ETFMG Alternative Harvest ETF (PSE:MJ) has climbed 26% and the S&P 500 (S&P:SPX) hs gained 13%.

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