MONCTON– Organigram, a leading licensed producer of medical marijuana based in Moncton, has announced that it has entered into a memorandum of understanding (MOU) with the New Brunswick provincial authority for the distribution of marijuana to the adult-use recreational market when it becomes legal next July.
The announcement comes the day before the provincial government is slated to make an announcement related to its approach to the sale and distribution of adult-use recreational cannabis in Moncton.
Ontario-based Canopy Growth has also signed an MOU with the province to distribute marijuana for the recreational market
Through the MOU, New Brunswick secures a supply of at least five million grams of recreational marijuana per year from Organigram. The company says the MOU is one of the first in Canada, and is the result of “positive, productive and ongoing consultation between the Government of New Brunswick and the company.”
“We are excited to enter into this MOU with the province,” said Greg Engel, Organigram’s CEO, in a 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.”
Organigram said the agreement is estimated to have a retail value of between $40-million to $60-million per year
It also said the company and the provincial government are both “committed to the safe and responsible implementation of the upcoming federal legislation regarding access to adult-use recreational marijuana.” As part of the MOU, Organigram will also contribute to social responsibility programs that will provide ongoing education, helping ensure public safety “remains a priority.”
“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,” says Ray Gracewood, Organigrams chief commercial officer. “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”.
The provincial government will make an announcement related to the province’s approach to the sale and distribution of adult-use recreational cannabis on Friday at 1 p.m. at the Delta Beausejour Hotel in Moncton. Organigram executives will also be on hand to talk about their agreement with the government.