Delta 9 To Buy Stake In Oceanic Releaf; Enter Newfoundland And Labrador Market
Delta 9 Cannabis Inc. said it has agreed to acquire a 5 percent stake in Oceanic Releaf Inc. and also entered into a deal to supply cannabis and cannabis-related products in the Canadian province of Newfoundland and Labrador.
The Canada-based cannabis company said it entered into a definitive agreement with Oceanic Releaf and Taylor Giovannini to acquire a 5 percent interest in the common stock of Oceanic in exchange for Delta 9 providing certain consulting and training services to Oceanic.
Oceanic Releaf is a Newfoundland and Labrador vertically integrated cannabis company. Oceanic is nearing completion of the Phase 1 retrofit within an existing 63,000 square-foot facility in the Burin Peninsula. The company is primarily focused on the wellness consumer segment within the recreational cannabis market.
In addition, Delta 9 has entered into an agreement with the Province of Newfoundland and Labrador, Newfoundland and Labrador Liquor Corp. or NLC, and Oceanic, pursuant to which Delta 9 will supply cannabis and cannabis-related products in that province.
“We also look forward to bringing our portfolio of high quality Delta 9 products into the Province of Newfoundland and Labrador. This marks Delta 9’s first direct investment in a cannabis company in Newfoundland and Labrador and when looking for opportunities to do so in that Province, Oceanic stood out as a clear choice,” said John Arbuthnot, founder and CEO of Delta 9.
Delta 9 said it will pay consideration for the Oceanic common shares it has acquired by way of providing certain consulting and training services to Oceanic over a one-year term pursuant to a strategic cooperation agreement.
Delta 9’s wholly-owned subsidiary, Delta 9 Bio-Tech, is a licensed producer of medical and recreational cannabis and operates an 80,000 square foot production facility in Winnipeg, Manitoba. In addition, Delta 9 owns and operates a chain of retail stores under the Delta 9 Cannabis Store brand.
In late May, Delta 9 said it will apply for licenses to open additional cannabis retail outlets in Manitoba. The cannabis company’s decision followed the Manitoba Government’s announcement of the third phase of retail cannabis expansion in the Canadian province.
Delta 9 said in April it received Health Canada’s approval for its new purpose-built cannabis processing center in Canada, which will enable fully automated bottling, packaging, capping and labeling of the company’s consumer-packaged dried cannabis products.
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