Emerald Health Joint Venture Lands Approval to Supply Ontario Cannabis Store

Already providing cannabis to two other provincial governments, Emerald Health Therapeutics (TSXV:EMH; OTCQX:EMHTF) has now been selected to supply the government-run Ontario Cannabis Store (OCS) through a joint venture project.

The company’s 50%-owned Pure Sunfarms joint venture just landed a lucrative approval to supply recreational and non-medical products to the OCS.

While the provincial approval allows for immediate shipping, before the first shipments can actually be sent to OCS, Pure Sunfarms will still have to wait on packaging and processing licenses to be granted by Health Canada.

Pure Sunfarms President and Chief Executive Officer Mandesh Dosanjh had this to say about the newly announced deal with Ontario:

The confidence of the OCS in our ability to supply safe, consistent quality products is a testament to the hard work of the entire Pure Sunfarms team, which has been relentless in advancing our organization to this stage. We are thrilled to be working with the OCS in Canada’s most populated province.

Emerald Health entered a joint venture with Pure Sunfarms to convert an existing structure located in Delta, British Columbia into a new cannabis cultivation facility with 1.1 million sq. ft. of grow space.

The construction project is now completed, with three-quarters of the facility up and running after receiving licensing for growing.

Before the facility can be fully operational, Emerald and Pure Sunfarms are awaiting final approval from Health Canada for the remaining quarter of the grow rooms to begin cultivation.

Outside of its joint venture with Pure Sunfarms, the British Columbia-based Emerald Health managed to fulfill its first full provincial shipment commitments to both B.C. and Newfoundland and Labrador in early November, just a few weeks after legalization arrived.

With supply of quality products at critical lows, the ability to meet agreed upon shipment quotas with provincial governments and private retailers has been a major issue for the newly legalized industry.

Industry experts expect that supply shortage to continue through the end of the year as more cultivation space is approved and companies are granted other needed licenses to commence grow operations and begin shipping products.

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Ty Arthur
Ty Arthur has spent the last decade of his journalism career covering everything from cutting-edge tech to local news through outlets such as the Houston Chronicle. He has focused on the counterculture aspects of society, from marijuana legalization to underground music through Metalunderground.com and rapidly changing trends in the entertainment industry. He lives in the cold, dark north with his wife and son. Address: 682 Indian Road, Toronto, Ontario, M6P 2C9. Phone: 416-721-8257.
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