Tilray to boost Canadian cannabis production and manufacturing
Tilray (NASDAQ:TLRY) plans to spend $32.6-million to increase its Canadian cannabis production and manufacturing capacity by 203,000 square feet at three plants.
The three Canadian sites are at Leamington and London, Ontario, and Nanaimo, British Columbia. The investment will expand Tilray’s total production and manufacturing capacity to 1.3 million square feet from 1.1 million worldwide.
The expansion announcement is timely news for IntelGenx (TSXV:IGX; OTCQX:IGXT), which has signed a definitive license, development and supply agreement with Tilray to co-develop and commercialize cannabis-infused oral film products based on its proprietary VersaFilm technology, in anticipation of amended cannabis regulations for the purchase of edible products in Canada.
Under the accord, IntelGenx will manufacture and supply the co-developed VersaFilm products to Tilray, and will receive a fixed single-digit royalty on net product sales. Tilray will have the exclusive, worldwide marketing and distribution rights for the co-developed products.