In a letter of intent signed by Emerald Health Therapeutics Inc (CVE:EMH), the company acknowledges that it will supply cannabis to the Société québécoise du cannabis (SQDC) with the first supply order expected to be fulfilled in Q2 2019. This is a big deal for Emerald considering that SQDC is the only legal distributor of recreational cannabis in the French-speaking province of Québec with an estimated population of 8.4 million.

Meeting Demand

The better part of this deal is that Emerald will not trouble at all to fill SQDC’s order given its production facilities in the region. Emerald will rally produce from its $100 million Verdélite Sciences Inc. occupying 88,000 square feet of land. Additionally, Emerald’s 50%- owned Pure Sunfarms will fill in the remainder. Just in time for the big supply, Pure Sunfarms acquired a second 1.1 million square foot greenhouse totaling the firm’s production capacity to 75, 000 kilos annually. Emerald’s vice president of Finance and Communications, Bernie Hertel that the company intends to scale up the facilities’ production to about 150,000 kilos annually by 2020.

Speaking on the company’s production prowess, Dr. Avtar Dhillon, Emerald’s President and Executive Chairman noted that “Verdélite is now near completion of the build-out of its 88,000 square foot indoor cultivation facility and has been scaling up production in licensed areas of the operation. We expect to be in full production and to also have nationwide distribution for the recreational market in the months ahead.”

Emerald’s Distribution Territories

Emerald has been actively expanding its distribution territories beyond Ontario, British Colombia, Yukon, and Newfoundland, and Labrador. The company has obtained sales agreements to supply marijuana from relevant government agencies including the Alberta Gaming, Liquor and Cannabis (AGLC) and the Saskatchewan Liquor and Gaming Authority (SLGA).

Day after another, Emerald is seeing its vision of distributing cannabis across Canada coming to pass. The company is not relenting on expansion efforts and the recent letter of intent it signed with SQDC is a testament to the company’s relentless expansion efforts. Less than a month ago Emerald delivered its first order of cannabis to Ontario Cannabis Retail Corporation in part of a strategic supply agreement.