While New Brunswick marijuana was slated to be supplied by two public companies, the province has added one more licensed producer to the mix.
On Nov. 20, 2017, New Brunswick announced that the provincial government had signed a memorandum of understanding with Zenabis, a medical marijuana brand based in Atholville, for the company to supply recreational marijuana for the provincial market.
“As we enter this new retail market, we need to ensure there is a safe and secure supply of cannabis for recreational use,” said Labour, Employment and Population Growth Minister Gilles LePage in a press release, on behalf of Finance Minister Cathy Rogers. “I am pleased we were able to enter into this agreement with a licensed producer located right here in Restigouche.”
According to CTV News, Zenabis has agreed to supply 4,000 kilos of marijuana and marijuana-derived products per year, having an approximate retail value of $40 million.
The New Brunswick marijuana agreement with Zenabis is similar to the agreements made with Organigram (TSXV: OGI) and Canopy Growth (TSX: WEED), with Organigram supplying 5,000 kilos of marijuana and Canopy supplying 4,000.
Zenabis expects its agreement with New Brunswick to create 450 jobs in Atholville within two years.
“We are excited to enter into this arrangement with the province,” said Kevin Coft, CEO of Zenabis. “It will assure that the New Brunswick government has taken the necessary steps to serve market demand once legalization takes place in July 2018. The announcement also allows Zenabis to make the necessary investments in machinery and equipment to provide a broad range of products for New Brunswick consumers. Most importantly, this announcement will help provide stable jobs and employment in this region. The Government of New Brunswick should be commended for its forward thinking with regards to the cannabis industry.”