Since recreational marijuana was legalized nationwide in Canada two weeks ago, Organigram Holdings (TSX-V: OGI) (OTCQX: OGRMF) has consistently been a driving force in the Canadian market, as well as venturing overseas.
Last month, Organigram expanded into the German market by purchasing a 25% share of Alpha Cannabis Germany. Today, Organigram officially inked an agreement with British Columbia to supply cannabis across the province.
This deal increases Organigram’s total number of overall distribution agreements to eight provinces in Canada and will see the company teaming up with the BC Liquor Distribution Branch (BCLDB).
Currently, the BCLDB is the only wholesale distributor of recreational marijuana in British Columbia, handling both online orders and local brick-and-mortar locations for direct sales.
Organigram Vice President of Sales and Commercial Operation Tim Emberg issued this statement about the newly signed deal in a press release to shareholders:
“We are excited to work with partners across the country, now including the Province of British Columbia to help ensure the success of new adult-use recreational cannabis markets in each of these regions.”
Through the agreement, Organigram will supply cannabis to the BCLDB under brand names such as Trailer Park Buds and The Edison Cannabis Company.
Organigram CEO Greg Engel further commented on the deal: “Organigram’s strategic vision has always been to establish a definitive national footprint. We are proud to realize that vision and offer Canadians from coast to coast access to our growing recreational product portfolio.”
This latest supply agreement is in line with the company’s recent moves to shift away from clinic operations and towards producing cannabis directly on a large scale. Last week, the company cemented that strategy by selling off the Trauma Healing Center clinic network to Harvest Medicine for $1,200,000.
The news may offer some relief to cannabis consumers still dealing with frequent shortages of supply, as well as to skittish investors.
Pot stocks have been hit hard in the two weeks since the Cannabis Act went into effect, with prices tumbling in the wake of nationwide legalization.