Licensed marijuana producer Canopy Growth continues to dominate the impending legal landscape for cannabis in Canada.
This time, the pot cultivator secured a deal with Newfoundland to supply the Atlantic province with 16,000 kg (approximately 35,274 pounds) of marijuana over the first two years of legalization. The agreement between the province and the producer also includes a one-year extension option.
Once legalization is a reality, which is expected in July 2018, Canopy will ship the supply of cannabis from its various manufacturing locations, with a plan in place to build a Newfoundland-based facility at a later date.
The eventual expansion will cost approximately $40 million to build and will bring 145 new jobs to the province.
The new facility is expected to produce 12,000 kg (26,455 pounds) of pot per year starting in 2019, but the bigger news comes in the form of a retail agreement between the two parties.
Along with the aforementioned line itemsCanopy , is expected to open four retail stores in Newfoundland to sell its products. This portion of the agreement marks the first time a licensed producer in Canada would own and operate marijuana retail locations, with one of them expected to be at the production facility.
“Our intent is to produce far more than we’re actually going to be able to sell here because I think branded product coming from Newfoundland is going to be a very successful commercial enterprise,” said Bruce Linton, chairman and CEO of Canopy Growth in a statement to the media.
The exact address of the cultivation and manufacturing plant have yet to be determined but the company says it is scouting locations now.
On Sept. 15, the company announced a similar deal with the province of New Brunswick to supply 4,000 kg (8,818 pounds) per year for at least two years.
credit:marijuana.com
