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WeedMD strikes transformational cannabis supply deal with Shoppers Drug Mart

Published: 13:00 20 Jun 2018 BST

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WeedMD continues its expansion into its recently licensed large-scale, fully-funded modern greenhouse

WeedMD (CVE:WMD) pushed the bar higher today as it announced it has entered into an agreement to become a medical cannabis supplier to Shoppers Drug Mart (TSE:L).

This is promising news for the company - a federally-licensed producer and distributor of medical cannabis. It  will supply Shoppers Drug Mart with WeedMD and affiliate branded medical cannabis products.

WeedMD’s medical cannabis products have become a trusted source for the seniors’ market and we are excited to expand accessibility to all medical cannabis patients through this strategic agreement with Canada’s leading provider of pharmacy products and services,” said chairman Michael Kraft.

READ: WeedMD eyeing the bigger league of Canadian cannabis producers

“As one of the most trusted names in pharmacy retailing and patient support services, we are pleased to be partnering with Shoppers Drug Mart as it looks to WeedMD for the supply of premium medical cannabis.”

The company says it expects the products will be sold only online, as Canadian regulations currently restrict the sale of medical cannabis in retail pharmacies. 

Shoppers Drug Mart a heavyweight

Shoppers Drug Mart is one of Canada’s most identifiable brands and when one of the largest pharmacy chains in Canada is working on becoming a leading dispensing agent, there's a sense that tides have shifted in terms of cannabis acceptance across the country. 

With more than 1,307 stores across Canada, the company has a deeply entrenched pharmacy network across the country, operating in nine provinces and two territories. It operates under the Pharmaprix name in Quebec.

Pharmacist lobby groups have argued in the past that pharmacies are an ideal outlet for cannabis: pharmacists have the skills and training, systems in place for safeguarding, and are experts in drug dispensing.

Shoppers Drug Mart is owned by Loblaw Companies Ltd (TSE:L), Canada's largest food retailer.

“Our strains directed at seniors’ and womens’ health will add a range of depth to Shoppers Drug Mart’s anticipated medical cannabis product offerings,” said Kraft.

WeedMD continues to hash out merger details

Last week, WeedMD announced that it had received legal permission to hold an annual and special meeting in regards to its announced deal with Hiku Brands Company Ltd (CNSX:HIKU).

As reported in April, WeedMD is seeking shareholder approval for the arrangement under the Business Corporations Act.

According to the company, the deal combines Hiku's portfolio of well-known brands and experiential retail stores with WeedMD's scalable cannabis production capabilities.

That's not the only thing in the works for WeedMD. Last week, it received the green light to start growing in the first four grow rooms at its new greenhouse in Ontario.

The cultivation licence comes from Health Canada and is for 220,000 sq ft of retro-fitted tempered glass.

This means the firm can now bring a total of 20 grow rooms into production in the coming months. 

Budding times in Canada

The deal comes on the back of yesterday's news that Canadians will be able to legally purchase and consume recreational marijuana by mid-September at the latest. A final hurdle was cleared after the Senate voted Tuesday to lift almost a 95-year-old prohibition on cannabis. 

This is positive news for WeedMD, as it continues its expansion into its recently licensed large-scale, fully-funded modern greenhouse, which will be the main supply source for its medical cannabis patients in addition to the future adult-use market.

In short, there will be a demand for more supply, and WeedMD is poised to continue its growth to meet that supply. 

Buds & Duds: Cannabis stocks cruise; WeedMD perks up on news of first...

Buds today are WeedMD (CVE:WMD) (OTCMKTS:WDDMF), The Green Organic Dutchman Holdings Inc (TSE:TGOD) (OTCMKTS:TGODF). The duds are Aphria Inc (TSE:APHA) (NYSE:APHA), Auxly Cannabis Group Inc (CVE:XLY) (OTCMKTS:CBWTF). 

on 17/4/19