Delta 9 Cannabis Inc (TSX:DN) said it has secured a purchase order from a US-based customer for up to eight of its modular Grow Pods.
The customer, who has not been named, has also entered into a strategic cooperation agreement with Delta 9 to provide services relating to the development of its cannabis production facility in Alabama.
The value of the purchase order and strategic cooperation agreement is expected to be approximately $600,000.
In a statement, Delta 9’s founder and CEO, John Arbuthnot, said the company’s “turnkey platform for Grow Pods and services continues to prove one of the best options for cannabis industry entrepreneurs seeking to produce premium quality cannabis products.”
The company’s production methodology, the Grow Pod, is based on a modular, scalable and stackable production unit, which are based on retrofitted 40-foot shipping containers. Delta 9 has successfully installed over 250 Grow Pods in third-party facilities across Canada and the United States since 2018.
The customer’s production facility has been designed for cultivation, processing, extraction, and product manufacturing and will be purpose-built using the turnkey and state-of-the-art Grow Pod system, it noted.
Delta 9 is a vertically integrated cannabis company focused on bringing the highest quality cannabis products to market, selling cannabis products through its wholesale and retail sales channels, and selling its cannabis grow pods to other businesses.
The company’s wholly-owned subsidiary, Delta 9 Bio-Tech Inc, is a licensed producer of medical and recreational cannabis and operates a 95,000-square-foot production facility in Winnipeg, Manitoba, Canada. The company also owns and operates a chain of retail stores under the Delta 9 Cannabis Store brand.
Contact the author at jon.hopkins@proactiveinvestors.com