United Cannabis Corporation (OTC: CNAB) announced Tuesday that it has been contracted to supply a single customer with its hemp-derived CBD isolate oil for 100 weeks.

The market value of the contract is from $30 to $42 million, United said.

This is the company’s second material agreement since the formation of its Colorado-based MEAD facility in June, where the CBD isolate will be processed, CEO Earnest Blackmon said in a statement.

“Together these agreements represent seven times the revenue than we reported in 2018, and we are still only at a fraction of our existing capacity,” Blackmon said, adding that the demand for hemp-derived, CBD-infused products has "exploded" since the passing of the Farm Bill.

Yet only a handful of states have established markets, and Colorado is in the lead, the CEO said.

Benzinga's Cannabis Capital Conference heads to Detroit on Aug. 15 — click here to learn more!

The company said it plans to launch similar facilities in Tennessee, South Carolina and Illinois by the end of 2019 and is eyeing an expansion to New York, California and Florida.

United Cannabis shares were rallying by 17.43% to 56 cents at the time of publication Tuesday.

Never miss a news story in the cannabis world. Click here to check out Benzinga Cannabis for more.

See more from Benzinga

• United Cannabis Corp Names Clifton Lamberth As Chief Marketing Officer

© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.