Delta 9 Cannabis Inc announced it had entered into an agreement with Manitoba Liquor and Lotteries Corporation to become one of the province’s first licensed cannabis distributors.
Under the distribution agreement, Winnipeg-based Delta 9 said it will work with authorized cannabis suppliers to provide cross-docking and distribution services to deliver cannabis to licensed retailers in the province.
The services will allow out-of-province suppliers to improve logistics efficiencies and reduce shipping costs – and give Delta 9 another significant source of revenue, it said in a statement.
READ: Delta 9 Cannabis doubles its retail stores with Uncle Sam's Cannabis Ltd acquisition; reports record 4Q revenue
"We see Delta 9's entry into the distribution services space to be the logical next step in the company's vertical integration strategy," said John Arbuthnot, CEO of Delta 9 said in a statement.
"Delta 9's existing relationships with the Canadian cannabis industry's leading suppliers and centralized warehouse presence in Winnipeg make us the ideal provider of these market services."
Manitoba has more than 125 licensed retailers in the province, with retail cannabis sales of more than $138 million in the twelve-month period between September 2020 to 2021, according to data from Statistics Canada.
Delta 9 said it intends to begin executing distribution agreements with suppliers “immediately,” and anticipates distribution shipments will begin in 2Q 2022.
Contact Angela at angela@proactiveinvestors.com
Follow her on Twitter @AHarmantas