Delta 9 Cannabis Inc. (OTCMKTS:VRNDF) lost 0.54% in the last trading session to close at $1.14 despite the company announcing that they had received authorization from the Saskatchewan Liquor and Gaming Authority to directly supply cannabis to the province’s wholesale and retail markets.
Expanding the market reach
John Arbuthnot, the Chief Executive Officer of Delta 9, stated that since the legalization of cannabis use for recreational purposes in October 2018 the company has had its focus in growing its market share and capacity in Manitoba. In their expansion plans the company is targeting to increase its production annually to over 60,000kg by 2022 as well as expand for retail and wholesale distribution network to around four stores by Q2 FY2019. In the province of Manitoba, the CEO indicates that they have already built their supply chain which has enabled the company to make regular shipments to retailers in the region.
The company will continue building and expanding its cultivation and processing facilities so that they can grow their capacity. This will enable Delta 9 to exploit potential in new markets using the same strategy. Early in this month, the company outlined its long-term vision of transforming its Winnipeg production facility.
Growing the retail supply
Delta 9 Cannabis employs a vertical integration retail strategy which allows the company to control the supply chain enabling them to meet the overwhelming demand of retail stores. Arbuthnot indicated that as they continue expanding their reach they were pleased to add Saskatchewan province which they will now be supplying. It is a great opportunity for cannabis customers in the province as they will easily get access to the premium branded Delta 9 cannabis products.
The company is pleased to announce that they intend to make the first shipment to Saskatchewan province retailers by the end of the Q1 FY2019. Currently, the company is discussions for expansion to other territories and provinces as well as private outlets and by the end of the year, they expect to have added more supply agreements.