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Delta 9 achieves milestone in agreement with Element Cannabis Group

Published: 13:08 16 Sep 2021 BST

Delta 9 achieves milestone in agreement with Element Cannabis Group
Delta 9's cultivation and processing production methodology is based around a modular, scalable, and stackable production unit called a "Grow Pod"

Delta 9 Cannabis Inc. announced that it has completed its final services milestone under an agreement with Alberta-based cultivation and processing partner, Element GP Inc. Element is an arm’s length third party in which the company has no ownership control or interest.

As one of its cultivation and processing partners, the company said it entered into a strategic cooperation agreement (SCA) with Element to provide services relating to the cannabis production, development of standard operating procedures, sanitation programs, consulting on Health Canada licensing, marketing services to develop the Element brand and other services supporting the acquisition of the Health Canada license. 

On September 3, 2021, Element confirmed it had reached its final milestone under the SCA and has been granted its cannabis standard cultivation and standard processing licenses from Health Canada.

READ: Delta 9 Cannabis closes transaction relating to the operation of two retail cannabis stores in Edmonton, Alberta

"We are delighted that Element Cannabis has received a Health Canada License for eight of our proprietary and turn-key Grow Pod and Extraction Pod systems and has future plans to apply for increased capacity under the current Health Canada License to expand their extractions operations capacity and to grow cannabis vertically in their newly built 64,000 square foot facility,” Delta 9 CEO John Arbuthnot said in a statement.

“Our turnkey platform for Grow and Extraction 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 cultivation and processing production methodology is based around a modular, scalable, and stackable production unit called a "Grow Pod", which is based on retrofitted 40-foot shipping containers. It has now successfully licensed over 200 Grow Pods in third-party facilities across Canada.

The turnkey smart growing platforms are developed using precision hardware and software growth applications for the indoor cannabis cultivation marketplace. 

Element’s facility has been designed using this turnkey and state-of-the-art Grow Pod and Extraction Pod system for their processing and cultivation requirements. Their extraction facility has been custom designed using three interlocking Grow Pods to house their extraction equipment to process cannabis distillate and isolate products. 

“Our goal is to produce high-quality extracts, concentrates and oils for the infused cannabis food and beverage industry throughout Canada and on the international level,” Element founder and CEO Jeff Brookman said. 

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.

Delta 9'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 stephen.gunnion@proactiveinvestors.com

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