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Shares in Cann Global (ASX: CGB) are spiking on the news that the medicinal cannabis developer and manufacturer has partnered with big-box retailer Costco in Australia, up 24 per cent to $0.031 per share at 3.59pm AEST.
The deal sees Costco ordering 6900 bottles of Cann Global's popular VitaHemp organic premium hemp seed oil daily capsule from Cann's food division T12.
Cann Global's food division corporate head Eli Levy did not underplay the significance of the deal with Costco.
"This is a major step towards building a strong relationship with the global wholesaler who currently have 11 locations in Australia and a twelfth to open soon in Perth," says Levy.
"Costco's member first policy and high-quality ethos will be a perfect fit for T12's business model."
Cann Global executive chairperson Pnina Feldman says the company is excited to be working with the world's second largest retailer.
"We are very excited to receive this first order from Costco, one of Australia's largest food retailers and this is proof of the hard work that has gone into producing our high quality and very nutritious products, which we believe will continue to set the standard for this industry in Australia," says Feldman.
"Our hemp seed oil capsules, developed by our dedicated and innovative management teamare a natural and plant-based alternative to fish oil capsules without the fishy aftertaste. We hope to see this and all our T12 products and brands on many Australian tables in the years to come and distributed across Asia."
Cann Global recently returned to the ASX after a year-long break as it realigned its business focus from bauxite mining to cannabis production.
The first two days were shaky for the company as it struggled to find its footing in the market initially, but following this morning's news the company is certainly on solid ground.
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Business News Australia
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