Delta 9 Cannabis (DN.T) has signed an agreement with the Province of Newfoundland and Labrador, along with cannabis company Oceanic Releaf, which will allow Delta 9 to supply cannabis and related products in that province.

The specifics of DN’s deal with Oceanic include trading consulting and training services to Oceanic Releaf in exchange for a 5% interest in the company’s stock. Oceanic Releaf is a Newfoundland and Labrador-based vertically integrated cannabis company. They’re closing in on the completion of the Phase one 15,000 square foot retrofit of existing space within their 63,000 square foot facility in the Burin Peninsula. Their primary focus is on the wellness consumer segment in the recreational market.

“We are looking forward to working with Oceanic to further assist start-up cannabis companies grow and flourish. We also look forward to bringing our portfolio of high quality Delta 9 products into the Province of Newfoundland and Labrador. This marks Delta 9’s first direct investment in a cannabis company in Newfoundland and Labrador and when looking for opportunities to do so in that Province, Oceanic stood out as a clear choice,” said John Arbuthnot, founder and CEO of Delta 9.

This makes sense for Delta 9, because it allows them to get in on the ground floor with a company that could end up being a more widely used strategic partner, allowing them to not only cultivate the relationship, but giving them the opportunity to widen their stake in the company later. A 5% investment isn’t much. It’s a foot in the door, but it’s enough to grow on should the company decide. Given Delta 9’s stated cross-Canada expansion goal, further realized today with an entry into Newfoundland and Labrador, getting their hands on a local grow operation is standard business.

Nobody in Newfoundland wants to smoke weed that’s been sourced on the far reaches of British Columbia.

—Joseph Morton