AgriCann Solutions Corp. announced approval of our application to register Newline Ventures Inc. (“Newline”) under the BC Liquor Distribution Branch’s (“LDB”) Direct Delivery Program (“DDP”). Newline is engaged under a definitive Share Exchange Agreement (“SEA”) to become a wholly owned subsidiary of AgriCann (see our news release of July 28, 2023), expected to close on or before October 12, 2023.
Under the DDP, BC consumers are getting closer to how the cannabis market worked prior to legalization, basically a farm-to-table system. Rather than sending products to the LDB’s central warehouse in the Lower Mainland, the LDB allows producers to register and list products for sale through the direct to retailer program. Retailers can then select products from that list and contact the producer directly to arrange delivery.
Bobby Athwal, AgriCann’s COO commented: “One of the big advantages of the DDP is that it allows a fresher product onto shelves, and more closely resembles the supply chain for cannabis growers and sellers prior to legalization. You know exactly who’s brought your product in, and maintaining a personal relationship with retailers allows us to provide a superior level of customer service. In many cases with the LDB, we don’t even know which retailers are carrying our product. Under this new model, we can get an order to a retailer in under 48 hours. Going through the LDB, that can be two or three weeks, and it may sit on a shelf for 90 days, so it’s just not as fresh of a product.”
Agricann’s CEO, Adam Sancewicz, emphasized: “Establishing a direct connection between retailers and suppliers marks the industry’s evolutionary leap forward. It cultivates personalized rapport, facilitating open dialogue and fostering genuine connections with each dispensary. We’re reintroducing the legacy culture into the legal framework, and it’s a movement that we are proud to be a part of. This pivotal juncture enables us to assume control over our supply chain and leverage logistical efficiencies to distribute local premium cannabis at more affordable prices to retailers across the province. Additionally, the preferred payment terms under the Direct Delivery model are extremely favorable in contrast to lengthy payment cycles typical of the BCLDB and other government provincial distributors.”
About AgriCann Solutions Corp.
AgriCann operates wholly owned subsidiary Craft Nurseries Canada Ltd., a full-service Health Canada licensed cannabis nursery located in Lake Country, British Columbia. The Company is positioned to complete the acquisition of Newline Ventures Inc. in nearby Vernon, British Columbia, a Health Canada licensed facility designed to accommodate AgriCann’s current and future expansion plans.
AgriCann Solutions’ website: https://agricannsolutions.com/
Craft Nurseries’ website: https://www.craftnurseries.com/
