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Delta 9 to become cannabis distributor in Manitoba

The Delta 9 Logistics Inc. subsidiary of Delta 9 Cannabis Inc. has entered into a limited cannabis distribution agreement with Manitoba Liquor and Lotteries Corp. in a move that could make it one of Manitoba’s first licensed cannabis distributors.

Under the agreement, Delta 9 said it intends to work with authorized cannabis suppliers to provide cross-docking and distribution services, fulfilling delivery of orders to licensed cannabis retailers within the province of Manitoba. “[This] will allow out-of-province suppliers to improve logistics efficiencies and reduce shipping costs into the Manitoba market and will provide [us] with additional diversified revenue streams,” company officials said in an April 14 news release.

“We see Delta 9’s entry into the distribution services space to be the logical next step in the company’s vertical integration strategy,” said Delta 9 CEO John Arbuthnot. “Delta 9’s existing relationships with the Canadian cannabis industry’s leading suppliers and centralized warehouse presence in Winnipeg make us the ideal provider of these market services.”

Retail cannabis sales in Manitoba for the twelve months ending Sept. 30, 2021 exceeded $138 million, according to data from Statistics Canada, with more than 125 licensed retail stores in operation as of Dec. 31, 2021. Delta 9 said it intends to begin executing distribution agreements with suppliers immediately and anticipates distribution shipments will begin in the second quarter of 2022.