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:
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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