Delta 9 (TSXV:NINE) announced an agreement to by 5,000 kilograms of cannabis from Alberta-based Sundial Growers.
As quoted in the press release:
The purchase is designed to increase Delta 9’s ability to meet the anticipated market demand following the full legalization of adult-use cannabis in Canada. The agreement commits Sundial to supply up to 5,000 kilograms of both dried cannabis and/or cannabis derivatives “to meet or exceed” Delta 9’s market demand in the period post-legalization. Delta 9 CEO John Arbuthnot says the agreement was reached as part of the company’s commitment to supply the Manitoba market. Delta 9 and partner Canopy Growth Corporation (Canopy Growth) (TSX:WEED) were selected in February by the Manitoba government as one of four successful bidders to a license to retail cannabis in the province.
Delta 9 and Canopy Growth have committed a significant supply of cannabis product for the provincial market. Delta 9 is increasing its annual production in Manitoba to 17.5 million grams per year by the end of 2019.