Delta 9 Cannabis Inc. (TSE:DN) (OTCQX:VRNDF) said it has completed its final services milestone under an agreement with its Alberta-based micro cultivation partner, Dry Island Ltd.
On January 29, 2021, Dry Island confirmed it had reached its final milestone under the Strategic Cooperation Agreement with Delta 9 and has been granted its cannabis micro cultivation licenses from Health Canada. Dry Island is an arm’s length third party in which Delta 9 has no ownership control or interest.
READ: Delta 9 Cannabis debuts new decontamination pods to help fight coronavirus
Under the Strategic Cooperation Agreement with Dry Island, Delta 9 provides services relating to the cannabis production, development of standard operating procedures and sanitation programs, consulting on Health Canada licensing, marketing services to develop the Dry Island brand and other services supporting the acquisition of the Health Canada license.
“We are delighted that Dry Island has received a Health Canada Licence for twelve of our proprietary and turn-key "Grow Pod" systems and we look forward to helping them grow their facilities into the future,” said John Arbuthnot, founder and CEO of Delta 9 in a statement.
“Our turnkey platform for Grow Pods and services continues to prove one of the best options for cannabis industry entrepreneurs seeking licensing and support services,” he added.
Delta 9's cannabis production methodology is based around a modular, scalable, and stackable production unit called a 'Grow Pod', which are based on retrofitted 40-foot shipping containers. Dry Island’s production facility has been designed and purpose-built using this turnkey and state of the art Grow Pod system.
Once cultivation begins, Delta 9 plans to purchase premium quality cannabis products from Dry Island for distribution through the company's established distribution network, and through Delta 9's nine branded retail stores. Delta 9 has now successfully sold over 250 Grow Pods to third party facilities across Canada.
“Dry Island is a business partnership owned and self-funded cannabis grower based in Stettler, Alberta and is proud to have used all local trades in the construction of our facility. We have plans to service the recreational cannabis market in Western Canada.” said the Dry Island management team. “The business partners, some who are in Precast concrete construction built a 5,200 square foot purpose-built facility and installed a state-of-the-art production facility that incorporates all the latest technology for growing cannabis.”
Dry Island has developed a state-of-the-art micro cultivation facility on a half-acre parcel of land, in Stettler, Alberta, that is halfway between Calgary and Edmonton. This new facility houses a micro cultivation license, including twelve new grow pod systems, and a proprietary craft growing approach developed by Delta 9. Dry Island’s initial plan is to focus on growing two strains of 20+ THC before it expands its product offering. Dry Island owns two additional half-acre adjacent lots to the property which are slated for future expansion.
Delta 9 Cannabis is a vertically integrated cannabis company focused on bringing the highest quality cannabis products to market. 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.
The group also owns and operates a chain of retail stores under the Delta 9 Cannabis Store brand.
Contact the author at jon.hopkins@proactiveinvestors.com