Auxly Cannabis Group together with its strategic partner, Atlantic Cultivation, has entered into a comprehensive supply, development and retail agreement with the Province of Newfoundland and Labrador.
Under the terms of the agreement, Atlantic will be eligible to apply to operate five new retail locations in the province. Site scouting is currently underway and Atlantic plans to open its first retail store by Q1 2020. Additionally, Auxly will supply to the Province of Newfoundland and Labrador up to 50 kg of dried flower (or equivalent derived products) in 2019, up to an additional 1,000 kg in 2020 and an option for up to another 1,000 kg in 2021.
"Atlantic has agreed to build a 110,000 square foot purpose-built facility in Kenmount Crossing, St. John’s, for cultivation, production and processing of high-quality cannabis," the team with the company explains. "Once fully constructed and operational, this facility will create 117 new jobs and will have the capacity to produce approximately 16,000 kg of cannabis annually."
According to them, Auxly will subscribe for up to 19.9% of the issued and outstanding shares of Atlantic for a total of $2.5 million, which will be used to build out the five retail locations.
The Honourable Christopher Mitchelmore, Minister of Tourism, Culture, Industry and Innovation, commented: “Attracting new investment and new industries to the province is important to the Government of Newfoundland and Labrador. This performance-based supply and production agreement with Atlantic Cultivation capitalizes on opportunities to diversify our economy, create wealth and contribute to sustainable employment. As we open the door to growth and export opportunities, we are taking another step in our goal to become a leader in the cannabis industry, nationally and internationally.”
“We are extremely pleased to have finalized the agreement with the Province of Newfoundland and Labrador,” said Chris Crosbie, Chief Operating Officer of Atlantic. “We are excited to get started on building out the production facility and look forward to announcing the locations of our retail stores as we establish them.”
For more information:
Auxly
info@auxly.com
auxly.com