Canopy Growth (TSE:WEED) makes another huge move by signing a supply and retail agreement with Newfoundland and Labrador province.
The Newfoundland and Labrador province officials have signed an agreement on Friday morning with Canopy Growth regarding the supply and retail of marijuana in the province.
This is the largest such agreement signed to date, given that only New Brunswick so far announced who will be supplying its residents.
The New Brunswick deal is much smaller compared to this, as Canopy Growth and Organigram combined are supposed to provide 5.000kg/year.
Terms of this agreement require Canopy Growth to supply 8.000 kilograms on its own to Newfoundland and Labrador for the first two years of the deal.
According to the details of the agreement, Canopy Growth will establish a new production facility in Newfoundland and Labrador capable of producing 12,000 kg per year.
This effort to boost the economy of Newfoundland and Labrador will also create 145 jobs in an emerging sector and major capital investment to the region.
The location which will house this new facility is still being evaluated.
Honourable Christopher Mitchelmore, Minister of Tourism, Culture, Industry and Innovation of Newfoundland and Labrador seems to be happy with the decision.
“We will use this as a framework for other agreements related to cannabis supply and production. Our vision is for an industry which leads to production, job creation, supply chain development and research and development in this province,” he said.
This deal will also enable Tweed Inc, on of the Canopy Growth subsidiaries, to open 4 new retail locations in the province.
These four licences granted to Tweed Inc. represent the first announced privately owned and operated legal cannabis retail locations in the country.
Bruce Linton, Chairman & CEO of Canopy Growth, said in a statement that Tweed will have facilities in seven provinces which will be boosting Canopy Growth’s coast-to-coast plan.
“The NFL retail framework will allow us to take our existing e-commerce business and a well-recognized house of brands and present that pride and dedication in a “brick and mortar” retail environment,” he said.