Fire & Flower Agreement
Open Fields Distribution wholly-owned subsidiary of Fire & Flower Holdings Corp. (OTCQX:FFLWF) (TSX:FAF) has entered into a one-year cannabis distribution agreement with Manitoba Liquor & Lotteries ("MBLL"). Under the Agreement, Open Fields will offer distribution of recreational cannabis products from licensed producers to retailers in the province of Manitoba at the direction of the MBLL.
Strategic Benefits of the Agreement
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Extends the existing Open Fields business, which offers wholesale and distribution services in Saskatchewan, into a second province.
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Leverages significant experience of the company's recently acquired logistics and delivery subsidiary, Pineapple Express Delivery.
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Enables retailers across Manitoba to receive product more efficiently and benefit from the established high level of service offered by Open Fields.
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Further enhances strategic relationships with key licensed producers across all segments of the Fire & Flower business.
"Open Fields was selected as part of a competitive RFP process to provide cross docking services in the province of Manitoba and we are delighted that MBLL has trusted our business to provide these services. Open Fields and Pineapple Express Delivery have significant experience in servicing retail customers in the provinces of Saskatchewan and Ontario and extending these services into an additional province creates scale and efficiency for the wholesale business segment," stated Trevor Fencott, CEO of Fire & Flower. "We will look to continue to pursue business opportunities and acquisitions that drive additional revenue by adding value to existing business segments."
Delta 9 Agreement
Delta 9 Logistics Inc. wholly owned subsidiary of DELTA 9 CANNABIS INC., (OTCQX:DLTNF) (TSX:DN) has entered into a limited cannabis distribution agreement with Manitoba Liquor and Lotteries Corporation.
Under the distribution agreement, Delta 9 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. The company’s cross-docking and distribution services will allow out-of-province suppliers to improve logistics efficiencies and reduce shipping costs into the Manitoba market and will provide Delta 9 with additional diversified revenue streams.
“We see Delta 9’s entry into the distribution services space to be the logical next step in the company’s vertical integration strategy,” stated John Arbuthnot, CEO of Delta 9. “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.”
The company intends to begin executing distribution agreements with suppliers immediately and anticipates distribution shipments will begin in Q2, 2022. Delta 9’s planned launch of distribution services in Manitoba is subject to the receipt of a distribution license from the Liquor Gaming and Cannabis Authority.
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