Delta 9 and Canopy Growth Corporation (TSX:CGC) have been selected by the government of Manitoba to build and operate recreational cannabis retail stores in the province.
The two partners were one of only four successful candidates chosen to operate a number of stores in the region.
Delta 9 boss John Arbuthnot said: “It is hard to overstate how important this award is for our company, our shareholders, and for the future of the legal cannabis industry in Manitoba.”
At the moment, the licence is only conditional, but the formal agreement, which includes meeting a series of conditions, is expected to be a formality.
Once official, this will mark Canopy Growth’s second provincial retail agreement after the world’s largest cannabis company previously announcing plans to apply to operate four retail stores in Newfoundland & Labrador.
“We look forward to establishing friendly and modern retail spaces that prioritise consumer education and superior customer service, resulting in a safe and positive experience for adult consumers,” added Canopy’s President Mark Zekulin.
The first of Delta and Canopy’s stores has already been constructed in Winnipeg and has been operating for several months as a resource centre. That will be the first of many stores, the two parties said.
Delta 9 has estimated that the provincial cannabis market is worth up to US$500mln annually.
On a side note, Delta said its products will be distributed through Canopy Growth’s outlets in other provinces.