Delta 9 Cannabis Inc (TSX:DN) said it has secured a significant purchase order from 1417376 B.C. Ltd. for the supply of eight modular grow pods for a cultivation facility in British Columbia.
The company has also entered into a strategic co-operation agreement with 1417376 B.C., further solidifying their partnership.
Under the agreement, Delta 9 will provide a range of services to support 1417376 B.C.'s cannabis production facility, including the development of standard operating procedures, sanitation programs, and consulting on Health Canada licensing.
Additionally, Delta 9 will assist in marketing services to establish the 1417376 B.C. brand, along with other services to facilitate the acquisition of a Health Canada cultivation and processing license. The total value of the purchase order and strategic co-operation agreement is estimated to be around $750,000.
"We are thrilled to collaborate with 1417376 B.C. Ltd. on the development of their facility, incorporating our state-of-the-art 'grow pod' systems," said John Arbuthnot, founder and CEO of Delta 9 in a statement.
He further emphasized the company's commitment to providing exceptional equipment, licensing, and support services for cannabis entrepreneurs.
Delta 9's innovative cannabis production methodology revolves around the use of modular and stackable production units known as grow pods, which are retrofitted from 40-foot shipping containers. The 1417376 B.C. production facility has been designed and retrofitted using this turnkey grow pod system. Delta 9 has successfully installed over 250 grow pods in third-party facilities across Canada and the United States since 2018.
1417376 B.C. Ltd., a family-operated business partnership based in Vancouver Island, expressed confidence in its ability to produce high-quality cannabis products that will captivate Canadian consumers. The firm's 18,000-square-foot microcultivation facility, situated on a 79-acre parcel of land in Comox Valley, British Columbia, will employ eight new grow pod systems and Delta 9's proprietary craft growing approach.
The company plans to focus on growing proprietary strains with high THC content and expand its product offerings with extracted products in the future. With two additional buildings earmarked for future expansion, 1417376 B.C. aims to accommodate over 100 more grow pods in a 30,000-square-foot space.
Delta 9 Cannabis is a vertically integrated cannabis company dedicated to delivering top-quality cannabis products to the market. Through its wholesale and retail sales channels, the company sells cannabis products and provides its cannabis grow pods to other businesses.
Delta 9 Bio-Tech Inc, a wholly owned subsidiary, operates a licensed medical and recreational cannabis production facility spanning 95,000 square feet in Winnipeg, Canada. Delta 9 also manages a chain of retail stores under the Delta 9 cannabis store brand.
Contact the author at jon.hopkins@proactiveinvestors.com