48North Signs Supply Agreement with OCS for Outdoor-Grown Cannabis

Published: June 11, 2019

48North Cannabis Corp. has signed a supply agreement with the Ontario Cannabis Store (“OCS”), Ontario’s sole wholesaler and online retailer for recreational cannabis. Under the 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, 48North expects to harvest cannabis at what is expected to be one of the lowest cost per gram in the country.

This supply agreement marks the Company’s third outdoor supply agreement with a provincial wholesaler for outdoor-grown cannabis. Previously, 48North signed agreements with the Société québécoise du cannabis (SQDC) for 1,200 kilograms of dried cannabis, and Alberta Gaming, Liquor & Cannabis (AGLC) for 2,460 kilograms of dried cannabis. To that end, 48North 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,” said Alison Gordon, co-CEO of 48North, “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.”

48North’s supply agreement with the OCS was signed on June 7, 2019, and pertains to calendar year 2019.