The government of New Brunswick just cut a massive deal with Organigram to provide a quarter of their product serve to all retailers in the country.
Per Civilized Life
Under the new agreement, Organigram — which is based in Moncton, New Brunswick — will allocate approximately 25 percent of its cannabis supply to stocking the shelves of recreational retailers. That means they will contribute no less than 5 million grams per year to retailers. The deal is valued at $40 million to $60 million.
“We are excited to enter into this MOU with the Province,” Organigram CEO Greg Engel said in a press release. “The Government of New Brunswick has established itself as a leader in the developing marijuana industry, working to ensure that the industry develops in a responsible and effective manner. New Brunswick’s stewardship on this file has been recognized throughout Canada and we are proud to work closely and support them as a strategic partner.”
Engel also congratulated the province on making this bold move to help the province boost the economy and create jobs with the unique opportunity that legalization offers. “We applaud the New Brunswick government’s efforts to foster an innovative, forward-thinking economic climate that supports cannabis as a driver of growth for New Brunswick-based businesses.”
But money isn’t the only thing on their minds. The agreement also includes a plan for Organigram to contribute to social responsibility programs that will educate the public about cannabis and promote public safety when recreational cannabis use becomes legal next year. It’s an opportunity that the company relishes because keeping communities safe has long been one of their top priorities, according to Chief Commercial Officer Ray Gracewood.
“As we move forward under this agreement, we have the opportunity not only to help build a strong and successful cannabis market within the province and beyond, but to also reinforce our company’s commitment to safety and education,” Gracewood said via press release. “The safety of those in our community is of the utmost importance, and we are proud to support programs that will continue to educate the public on cannabis and all of its forms.”
Read more about the landmark deal here