Toronto-based producer 48North Cannabis Corp. (TSXV: NRTH) has delivered its first order of recreational marijuana to the Ontario Cannabis Store for retail sale.
The firm has an indoor facility called DelShen in Kirkland Lake, Ontario, and it has just sent OCS its first shipment of 180kg of dried flower. It has also agreed to supply the provincial distributor with 1,200kg from its larger site, which is called Good:Farm and located in Brantford.
It describes Good:Farm as Canada’s largest organic outdoor cultivation facility. It has the capacity to eventually produce 40,000kg on an annualized basis, and 48North claims it will achieve the lowest cost per gram in the country. Planting began there on Jul. 12, 2019, covering a 100-acre plot.
It has also tied up deals to supply Alberta Gaming, Liquor and Cannabis agency with 2,460 kg of dried cannabis and the Société Québécoise du cannabis for 1,200 kg of dried cannabis. That will take 2019 sales to provincial distributors up to 5,000kg, and it has ambitious plans for future growth.
Earlier this week, 48 North made a $1.25 million strategic investment in Friendly Stranger Holdings Corp., a cannabis accessories retailer that has been operating in Ontario for 25 years.
Friendly Stranger aims to begin selling cannabis soon and it is actively pursuing a licence. 48North is a big fan of the business and it is confident that Friendly Stranger can dominate the Ontario cannabis retail market due to the strength of its customer service and its reputation as “Canada’s most iconic cannabis culture shop”.
The agreement guarantees 48North a presence in all future Friendly Stranger stores. The retailer now has a commitment to stock 48North products without listing fees, and there will be co-branding collaborations in future too.
“With a focus on high-quality, sun-grown cannabis from Good:Farm, future-focused next-generation cannabis products, and premium-grown cannabis from its northern facility, Delshen, 48North looks forward to having its products available for future Friendly Stranger customers,” said Alison Gordon, co-chief executive at 48North.
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