Provincial Government Announces Production and Supply Agreement with Atlantic Cultivation
The Provincial Government continues to position the province as a leader in Canada’s cannabis industry by entering into a production and supply agreement with Newfoundland and Labrador’s Atlantic Cultivation Inc. and its strategic partner, Auxly Cannabis Group. By 2024, this agreement will contribute an estimated $215 million annually to the provincial GDP; will result in over 400 jobs through direct, indirect and induced employment; and, provide nearly $28 million in wages and salaries.
The Honourable Christopher Mitchelmore, Minister of Tourism, Culture, Industry and Innovation, and Chris Crosbie, COO of Atlantic Cultivation, announced details today in St. John’s. They were joined by Andrew McMillan with Auxly Cannabis Group.
As a result of this 20-year agreement, Atlantic Cultivation has committed to creating a minimum of 117 person years of employment, and will invest over $37 million to construct an 110,000 square foot cannabis production facility on Kenmount Road in St. John’s. Construction of this new facility will commence immediately, and when in full production, will have the capacity to produce 16,000 kilograms of cannabis annually.
Auxly Cannabis Group, a Health Canada licensed producer based in Toronto, will provide the majority supply for Atlantic Cultivation for entry into the Newfoundland and Labrador market. Atlantic Cultivation will have access to up to five retail licenses, and will be investing $500,000 over five years to support cannabis research and development in the province.
This agreement with Atlantic Cultivation and Auxly Cannabis Group will allow for the sale of its cannabis products in the province through the Newfoundland and Labrador, Liquor Corporation licensed retailers and, online through CannabisNL.
The Provincial Government now has three agreements in place for local cannabis production, totaling at least 44,000 kilograms per year by 2025. Direct jobs associated with the three agreements is 382. Discussions continue with other potential producers, including local firms, who are pursuing cannabis production and processing.
Quotes
“Attracting new investment and new industries to the province is important to our government. This performance-based supply and production agreement with Atlantic Cultivation capitalizes on opportunities to diversify our economy and contribute to sustainable employment. As we open the door to growth and export opportunities, we are taking another step in our goal to become a leader in the cannabis industry, nationally and internationally.”
Honourable Christopher Mitchelmore
Minister of Tourism, Culture, Industry and Innovation
“We are excited to finalize this agreement with the Government of Newfoundland and Labrador. Since the announcement of our partnership with Auxly back in October, we have been focused on designing a built-for-purpose world class cannabis production facility while finalizing the terms of our agreement with the province. Now that we have the contract in place and the facilities design is complete, it is full steam ahead on starting construction of the production facility, opening our stores and hiring a local operations team that is passionately dedicated to producing high quality cannabis and derivative products. We look forward to announcing the location of our retail stores in the coming weeks.”
Christopher Crosbie
COO, Atlantic Cultivation Inc.
“We are excited to continue to build on our partnership with Atlantic and reinforce our commitment to Atlantic Canada, where we are building meaningful cannabis businesses that have a positive impact on the region. We look forward to delivering high quality cannabis products and ultimately exceptional in-store experiences to the Newfoundland and Labrador community.”
Hugo Alves,
Chief Executive Officer, Auxly