48North Cannabis Corp. (TSXV: NRTH) (OTC: NCNNF) has agreed to supply dried cannabis to the Ontario Cannabis Store (OCS), the sole wholesaler and online retailer for recreational cannabis in Ontario.
Under a supply agreement, 48North will supply the OCS with 1,200 kilograms of dried cannabis from its outdoor farm in Brant County, Ont., (Good Farm) and other cannabis products such as pre-rolls from its indoor facilities in Brantford, Ont., (Good House) and Kirkland Lake, Ont. (DelShen Therapeutics).
48North’s Good Farm is expected to produce an estimated 40,000 kilograms of organic, sun-grown cannabis from more than 3.7 million square feet of outdoor cultivation space.
At Good Farm, the company expects to harvest cannabis at what is expected to be one of the lowest cost per gram in the country.
Third Outdoor Supply Agreement
The agreement with the OCS marks 48North’s third outdoor supply agreement with a provincial wholesaler for outdoor-grown cannabis.
Previously, the company signed agreements with the Société québécoise du cannabis for 1,200 kilograms of dried cannabis, and Alberta Gaming, Liquor & Cannabis for 2,460 kilograms of dried cannabis.
To that end, the company has committed nearly 5,000 kilograms of dried cannabis from its Good Farm in 2019 to the Canadian recreational cannabis flower market.
“48North is looking forward to delivering high-quality, sun-grown, low-cost and organic cannabis to some of the largest cannabis markets in the country. Through a series of historic supply agreements, 48North has solidified its place as part of the solution in addressing the significant supply shortages facing the Canadian recreational cannabis market,” stated Alison Gordon, the co-CEO of 48North.