Delta 9 Cannabis Inc. (TSX:DN) announced that its wholly-owned subsidiary Delta 9 Logistics Inc has received a Cannabis Distributor License from the Liquor Gaming and Cannabis Authority (LGCA) of Manitoba, making the company the first licensed distributor of cannabis products in the province.
The license, which is valid from October 20, 2022, through to September 30, 2023, allows Delta 9 to acquire, store, sell and deliver cannabis in accordance with The Liquor, Gaming and Cannabis Control Act of Manitoba, the company said.
"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 in a statement.
READ: Delta 9 Cannabis completes acquisition of three retail cannabis stores in Manitoba
"Our 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," he added.
Delta 9 said its distribution services will allow out-of-province suppliers to improve logistics efficiencies while reducing shipping costs into the Manitoba market, and will provide the company with additional diversified revenue streams.
The company added that it intends to begin executing distribution agreements with suppliers immediately and anticipates shipments to begin in the fourth quarter of 2022.
Retail cannabis sales in Manitoba for the twelve months ended August 30, 2022, exceeded $169 million, Delta 9 noted, citing data from Statistics Canada. There were more than 150 licensed retail stores in operation as of September 30, 2022.
Delta 9 is a vertically integrated cannabis company focused on bringing the highest quality cannabis products to market. Its 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 and operates a chain of retail stores under the Delta 9 Cannabis Store brand.
Contact the author at jon.hopkins@proactiveinvestors.com