Shoppers Drug Mart has been busy signing supply deals with cannabis companies — it has tallied six so far. This is despite the Loblaw (OTC:LBLCF) owned company still waiting for approval from Health Canada to distribute prescription marijuana.
There are questions over the decision to announce deals before the pharmacy has gotten the green light to distribute medical cannabis, but none-the-less it has been disclosing details as it patiently waits.
We reported last month that WeedMD (GREY:WDDMF) was the latest marijuana company to join the likes of Aphria (OTC:APHQF), Tilray, and MedReleaf (OTC:MEDFF) in signing a major supply-deal with the Canadian pharmacy behemoth. But that deal seems to be just the beginning.
WeedMD to Supply Shoppers
WeedMD is considerably smaller than its counterparts and the Shoppers deal marks an encouraging boost for the company;
“The bulk of the other producers that signed on with Shoppers are much larger than WeedMD…What it really provides is that good housekeeping stamp of approval on our business, on our quality assurance processes and, ultimately, on the quality and consistency.” stated chief financial officer Keith Merker.
It is expected that the products will be sold online as the law currently restricts the sale of medical cannabis in retail pharmacies.
But That’s Not All! First Shoppers Drug Mart, Now Alberta Province
Along with the major deal, WeedMD recently expanded its facilities with a licensed large-scale, fully-funded greenhouse in Strathroy and it is here that the majority of the Shoppers Drugmart supply will be produced. This is alongside product for its future legal-recreational adult market and the first yield is expected in September.
The new expansion couldn’t have been ready at a better time as only 4 days ago WeedMD signed another deal with the Alberta Gaming, Liquor & Cannabis Commission to supply the province with cannabis products for sale in Alberta’s adult-use market. The company will supply the Alberta market with marijuana product from the first day of legal sales (Oct 17th). WeedMD has a strategic plan to become a national distributor across the medical and recreational platforms and this partnership is a positive leap in the right direction.
It’s no secret that the Canadian cannabis market is heating up in anticipation for adult-use legalization to kick-in. This is the time where we are sorting the men from the boys and WeedMD is showing itself as a formidable supplier.
Despite the good steps though, as is the stock market ever volatile, its stock is trading at $2.04 — down -0.49% at the time of writing.
Featured Image: Deposit Photos/Daxiao_Productions