Delta 9 Cannabis Inc. (TSX:DN) has announced the opening of a US-based showroom in Valley City, North Dakota, for sales of the company’s proprietary grow system.
The Winnipeg, Manitoba-based vertically integrated cannabis company said the showroom will give potential Grow Pod customers a stateside option to view Delta 9’s working infrastructure. “Delta 9 has now sold over 250 Grow Pods to third party facilities across North America,” said the company.
“We are continuing to ramp up our marketing efforts for our Grow Pods in the US market and this new showroom will play an important role in our US strategy," Delta 9 CEO John Arbuthnot said in a statement. “We feel the US market will provide a significant growth opportunity for our business-to-business (B2B) and equipment products in the coming years.”
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Delta 9’s flagship cultivation technology is based around a modular, scalable, and stackable production unit called a "Grow Pod," tucked inside 40-foot retrofitted shipping containers. The Grow Pods are built to comply with Health Canada or other state or federal regulatory standards for security and Good Agricultural Practices and are optimized for large-scale cultivation operations, noted the company.
The showroom is co-located with Malach Metal and Machining Inc. which has facilities in Winnipeg, Canada and Valley City, in the US and is a world-class supplier of fabricated metal products and supply chain solutions to the transportation, agricultural, heavy construction, medical and electronics industries. The company has over 135,000 square feet of manufacturing, storage, and office space in Canada and the US with over 120 staff members.
“Malach has acted as a third-party manufacturing partner of Delta 9’s Grow Pods in the Canadian market and has capacity to provide a Made in USA solution for US-based Delta 9 Grow Pod customers,” said Delta 9.
The Canadian company said Grow Pods provide the following benefits versus traditional open warehouse or greenhouse cultivation operations:
- The Grow Pods provide a high level of control over the growing environment for variables such as light intensity and spectrum, temperature, and humidity contributing to higher quality agricultural products;
- The ability to customize the growing environment for each genetic variety of crop, maximizes the quality and yield;
- The Grow Pods provide an attractive return on invested capital for cash crops;
- The modular format and controlled environment minimize the risk of contamination from plant diseases or pests; and
- The modular format minimizes the risk of materially significant crop loss.
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. Delta 9 owns also operates a chain of retail stores under the Delta 9 Cannabis store brand.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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