Delta 9 Cannabis Inc.
The Winnipeg-based company opened its fourth store in Manitoba earlier this week and this expansion into Alberta will take its retail estate up to six. It has signed a binding letter of intent to give Modern Leaf Group $1 million worth of its stock and $300,000 in cash.
It expects to complete the purchase by Nov. 30, 2019, provided due diligence proves to be satisfactory.
Father and son team Bill and John Arbuthnot founded Delta 9 in 2012. Two years later it became the fourth Canadian company to secure a license to distribute medicinal marijuana.
It built up an 80,000 sq. ft. production facility in Winnipeg and it employs more than 150 staff. It is now bolstering its retail presence.
It was one of four operators to gain a retail license for Manitoba, and the first one opened in the St. Vital area of Winnipeg in October 2018. It has since opened stores in Osborne Village in Winnipeg and in the city of Brandon, and a fourth was unveiled in Thompson this week.
The stores sell a wide range of dried cannabis flower, cannabis oil, and a full assortment of cannabis accessories, including a mix of its own products and third-party products.
John Arbuthnot said the acquisition of the stores in Alberta fits in with its strategy of becoming a nationwide retailer. He said the firm is “actively looking to increase this number as quickly as possible”.
The Alberta cannabis market has grown exponentially since Alberta Gaming Liquor Cannabis lifted a moratorium of new licences. A supply shortage forced it to impose the moratorium in the first place, but that has eased and the moratorium ended in May 2019.
By last month the store count had gone past the 250 mark and it has continued to rise ever since. Fire & Flower, High Tide, National Access Cannabis Corp., Westleaf, and Choom are among the groups operating retail stores in Alberta.
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