Sundial Growers Inc. (“Sundial”) announced today that the company has entered into a Memorandum of Understanding (“MOU”) to supply up to five (5) million grams of cannabis and cannabis derivative products per year to Delta 9 Cannabis Inc. (“Delta 9”).
“This supply agreement enables Sundial to expand into the Manitoba market. We are thrilled to be able to provide Manitoba residents with quality cannabis products through Delta 9,” said Sundial’s Chief Commercial Officer, Andrew Stordeur. “Sundial applauds Delta 9 for building a strong partnership framework to ensure that Manitoba has a sufficient supply of cannabis.”
Both parties have agreed to share market data and marketing strategies in order to ensure that the production and delivery of product is optimized to meet consumer preferences and demand. The parties will also work together on product trials, marketing and branding strategies, technology services and education.
“Delta 9 is committed to working with Sundial to ensure that we meet or exceed our supply projections in order to satisfy the needs of Manitobans,” said CEO John Artbuthnot, from Delta 9. “No one can definitively predict what will happen in the cannabis market in the first year after legalization, but early indicators suggest that demand will increase dramatically, and Delta 9 intends to be ready for that demand.”
All clauses in the MOU are pending provincial regulatory structures and Health Canada approvals and regulations. Product supplied by Sundial will be subject to the terms and policies of the provincial regulatory authority within the jurisdiction of the supply agreement. Sundial is required to supply cannabis that meets or exceeds Health Canada standards and has agreed to warrantee such quality to Delta 9 and its customers.