48North Cannabis Corp. (TSXV: RTH) (OTCMKTS:NCNNF) is preparing to supply outdoor grown cannabis to the Société québécoise du cannabis (SQDC), which is the only legal retailer of recreational cannabis in Quebec.
The company has reported signing “Canada’s first-ever letter of intent for outdoor grown cannabis” with the SQDC.
Outdoor and Sun-Grown Cannabis
Under the agreement, 48North will supply 1,200 kilograms of cannabis to the SQDC from its outdoor farm in Brant County, Ontario, and 120 kilograms of indoor grown cannabis from its facilities in Brantford and Kirkland Lake in Ontario.
The 1,200 kilograms of cannabis will be delivered in the fourth quarter of 2019.
48North is the first Canadian company to apply for an outdoor cultivation license from Health Canada. Last month, the company submitted its evidence package to Health Canada and is awaiting approval for its cultivation license in time for the start of the 2019 growing season.
“Outdoor, sun-grown cannabis will be essential to the future of the Canadian cannabis industry and 48North is excited to lead the way,” Jeannette VanderMarel, co-CEO of 48North, stated. “Through today’s letter of intent, 48North is taking a meaningful step to respond to market demand and provide a reliable and environmentally-sustainable source of production for Quebec.”
The 100-acre outdoor farm, located in Brant County, Ontario, is expected to produce an estimated 40,000 KG of organic, sun-grown cannabis, from more than 3.7 million sq. ft. of outdoor cultivation space.
48North is a licensed cannabis producer focused on health and wellness products. Its assets include a sun-grown 100-acre outdoor organic farm; two modern indoor licensed cultivation and production facilities; and partnerships with companies in cannabis, manufacturing and consumer packaged goods. 48North subsidiaries DelShen Therapeutics and 2599760 Ontario d/b/a Good & Green are licensed producers under the Cannabis Act.
The company is developing formulations and manufacturing capabilities for its own proprietary products. It operates two indoor-licensed cannabis production sites in Ontario with over 86,000 square feet of production capacity.
The company’s portfolio of brands that include Latitude, a women’s cannabis platform and Mother & Clone, a rapid-acting sublingual cannabis nanospray.