Tilray (TLRY) - Get Report  entered into a definitive three-year agreement with Canadian product processing company Neptune Wellness (NEPT) - Get Report for cannabis extraction and purification. 

Under the terms of the deal, Tilray will give a minimum of 125,000 kilograms of cannabis and hemp biomass to Neptune for processing to extract crude resin, winterized oil and distillate extracts. 

"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 of Neptune.

Neptune expects to receive its first Tilray shipment in September.

"We are excited to start our relationship with such a great company as Tilray and we look forward to our future collaboration together" said Michel Timperio President of Neptune's cannabis division.

Tilray shares were rising 4.3% on Friday to $37.24, while Neptune Wellness gained 14.1% to $4.53.