Delta 9 Cannabis Inc. (TSE:DN) (OTCQX:VRNDF) said its strategic partner Oceanic Releaf Inc. has been granted its cannabis cultivation licenses from Health Canada for standard cannabis and processing operations.
Delta 9 owns a 5% equity stake in Oceanics’ production facility operations and retail store and has a 20-year supply agreement with Oceanic and the Government of Newfoundland and Labrador.
“We look forward to continuing working with Oceanic on expanding their cultivation and retail operations in Newfoundland,” said John Arbuthnot, CEO of Delta 9 in a statement. “We are very excited to be able to offer the residents of Newfoundland and Labrador the best selection of cannabis products and to work with Oceanic to create a world-class production facility.”
Oceanic has a Strategic Cooperation Agreement with Delta 9 that provides a variety of services relating to the cannabis production, development of standard operating procedures and sanitation programs, marketing services to develop the Oceanic brand and other services supporting the acquisition of the Health Canada license.
"This is a major milestone for Oceanic and an exciting day for Oceanic as we become a vertically integrated cannabis producer,” added Taylor Giovannini, president of Oceanic. “We are so excited to be able to supply the local market, and beyond, with premium cannabis cultivated right here in our province.
"Having just opened the first of what we hope will be many retail experiences across the province, including the area’s first cannabis drive-thru. We’re happy to be bringing some well-deserved good news stories to our cannabis industry.”
Oceanics owns an existing 63,000 square foot production facility that will begin growing cannabis hydroponically in a 15,000 square foot portion of the building. This section of the facility is equipped with a state-of-the-art cultivation equipment and includes some of the latest technology surrounding climate control and grow room automation. Oceanic plans to incorporate more innovative sustainability in future phases of expansion. It expects this phase of the operation to be the first step in a more significant growth strategy to eventually utilize the entire production facility.
Oceanic recently opened a 2,300 square feet cannabis store in the Province of Newfoundland and Labrador which is located in Burin Bay Arm on December 15, 2020. The new store is the largest cannabis retail store in the area offering a drive-through option for customers that want to remain in their cars when they make a purchase. This was the first drive-through Cannabis store in Canada.
The company will also open a store in St. John’s, Newfoundland and Labrador by the end of 2021 and have plans to expand throughout the province.
Delta 9 Cannabis is a vertically integrated cannabis company focused on bringing the highest quality cannabis products to market. The company sells cannabis products through its wholesale and retail sales channels and sells 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 an 80,000 square foot production facility in Winnipeg, Manitoba, Canada. Delta 9 owns and operates a chain of retail stores under the Delta 9 Cannabis Store brand.
Contact the author at jon.hopkins@proactiveinvestors.com