DELTA 9 CANNABIS INC. (TSX-V: NINE) ("Delta 9" or the "Company") has entered into a national distribution agreement with Canopy Growth Corporation ("Canopy Growth")(TSX: WEED), the country's largest producer and distributor of cannabis under the Access to Cannabis for Medical Purposes Regulations ("ACMPR").
Under the agreement Delta 9 will offer their already well established cannabis products through the curated CraftGrow line via Tweed Main Street's online store.
The agreement extends the existing cooperation between Delta 9 and Canopy Growth. In July this year the two companies jointly submitted an Expression of Interest outlining their proposed participation in the Manitoba market, including supply and distribution functions where possible with both companies pursuing privately owned and operated retail.
"Our company is excited to further our growing partnership with Canopy Growth," said Delta 9 CEO John Arbuthnot. "We are already working closely on a project to jointly serve the growing market in Manitoba; this project brings Delta 9's craft grown cannabis products to a wider national audience through Canopy Growth's well-established CraftGrow network."
Delta 9 was founded in 2012, and quickly became the fourth fully licensed producer and distributor of medical cannabis in Canada. Currently operating an 80,000 sq. ft. production facility in East Winnipeg, Delta 9 is focused on growing small batch, hand trimmed medical cannabis strains in its innovative, self-designed Grow Pod systems.
As Manitoba has recently unveiled its proposed cannabis distribution model, which includes private sales, Delta 9 will collaborate with Canopy Growth to pursue the provincial authorization needed to serve the local market with consistent high-quality standardized cannabis products, while gaining access to consumers across the country through Canopy Growth's online marketplace: www.tweedmainstreet.com.
"We recognize the varied needs of our patients and through the CraftGrow program we aim to bring them the highest quality products from a variety of producers that each bring a unique offering forward," said Mark Zekulin, President of Canopy Growth. "Delta 9 is the ninth participant in the CraftGrow program but the first established producer with years of experience operating as a vertically integrated business itself. We want to promote the value of our platform approach and welcoming Delta 9's products to our shop speaks volumes about the program itself."
As announced last week, Delta 9 is rapidly expanding its production to meet the expected increase in demand following legalization of recreational cannabis. The company began construction this week on an additional 143 grow pods at its Winnipeg facility, each capable of producing between 30 to 32 kilograms of craft cannabis annually.