A licensed marijuana producer says it has a deal worth up to $60 million to supply cannabis to the New Brunswick government, which is set to make an announcement about its approach to the sale and distribution of recreational marijuana this afternoon.
OrganiGram (OGI.V) says it will participate in a government news conference scheduled for 1 p.m. AT in Moncton (12 p.m. ET).
The provincial government didn’t respond to requests for comment.
The Moncton-based company says it signed an agreement Thursday to allocate about a quarter of its production — or a minimum of five million grams per year — to the province’s adult recreational market.
Canadian provinces are deciding how to distribute and regulate the use of recreational marijuana after the federal government introduced legislation in April with a goal of legalizing and regulating the use of recreational marijuana by July 1.
A New Brunswick legislature committee is recommending selling marijuana through government-operated stores to anyone 19 years or older.
Ontario was the first out of the gate, announcing a detailed plan last week that would restrict sales to residents 19 or older from as many as 150 dedicated stores run by the province’s liquor control board or through the Internet.
The retail value of OrganiGram’s supply deal for recreational cannabis is estimated at between $40 million an $60 million a year, it said in a news release.
“We applaud the New Brunswick government’s efforts to foster an innovative, forward-thinking economic climate that supports cannabis as a driver of growth for New Brunswick-based businesses,” OrganiGram CEO Greg Engel said in a press release.
The company is a New Brunswick marijuana producer along with Tidal Health Solutions and Zenabis.
A Deloitte report last fall suggested recreational marijuana could be worth about $22.6 billion to the Canadian economy.
credit:420intel.com
