William Sumner
Organigram Holdings (OGRMF), a medical cannabis producer based in Moncton, New Brunswick, has announced that the company has signed a memorandum of understanding (MOU) with the Government of Prince Edward Island to distribute cannabis for the province’s adult-use recreational market.
Under the MOU, Organigram will provide the provincial government with a minimum of one million grams of cannabis per year. The annual retail value of the deal has been estimated to be approximately $8 million – $12 million.
The MOU mirrors another recent arrangement between Organigram and the Government of New Brunswick signed in 2017 to supply the province with a minimum of five million grams of cannabis per year. The value of that deal was estimated to be between $40 million to $60 million per year.
Prince Edward Island is 120 miles north of Nova Scotia and has a little over 142,000 residents. It is the smallest province in Canada in both land and people. Its largest island is approximately the size of the state of Delaware.
“There is tremendous cannabis expertise here in the Maritimes,” said Organigram CEO Greg Engel in a statement. “We have worked hard to assemble a local, world-class team of experts. We applaud PEI’s recognition of our homegrown industry leadership and its commitment to building – and formalizing – positive and productive working relationships with regionally-based companies like Organigram.”
Canopy Growth Also Signs PEI Deal
The Government of Prince Edward Island has also signed an MOU with Canopy Growth Corporation (WEED), a diversified cannabis and hemp company based in Smith Falls, Ontario, to distribute recreational cannabis in the province.
Under the two year agreement, Canopy will provide a minimum of one million grams of cannabis for the first year. The agreement will renew for a third year pending mutual agreement between both the province and the company.
“We’re looking forward to bringing popular brands like Tweed, Leafs By Snoop, DNA Genetics, and a number of the best independent craft cannabis producers across Canada to the people of Prince Edward Island through this agreement,” said Canopy Growth president, Mark Zekulin, in a statement.
In addition to providing recreational cannabis, both Organigram and Canopy have agreed to work with the provincial government to develop educational tools and resources for public health campaigns aimed at encouraging public safety and responsible cannabis use.
