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Delta 9 Obtained Health Canada License To Expand Cannabis Processing

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Delta 9 Obtained Health Canada License To Expand Cannabis Processing

Delta 9 Cannabis Inc. (TSX: DN) (OTCQX: VRNDF) has obtained Health Canada approval for its newly built center for cannabis processing.

The Canadian producer and distributor of medical cannabis is yet another company to receive Health Canada approval for its operations. Other recent approvals were granted to Spartan Bioscience for the shipment of portable COVID-19 tests to federal and provincial government partners, and production of Neptune Wellness Solutions Inc. (NASDAQ: NEPT) (TSX: NEPT) plant-based hand sanitizers.

The Delta 9 facility will accelerate its production procedure, allowing processing up to 25,000 kilograms per year of dried cannabis flower material. That's an increase of 200% compared to the company's current capacity of 8,325 kilograms per year.

The facility enables entirely automated packaging, bottling, capping, and labeling of its consumer-packaged dried cannabis products, which will speed up the process of bringing consumer packaged cannabis products to market.

"The excess capacity in the new production line will also allow us to source premium cannabis flower from other licensed producers, including the Company's micro-cultivation partners, for sale through our wholesale and retail distribution network," said John Arbuthnot, CEO of Delta 9 in a statement.

The company reported its Phase II Expansion plans, including putting under Health Canada licensed cannabis production perimeter additional buildings at its Winnipeg, Manitoba-based production facility.

However, due to the COVID-19 outbreak, Delta 9 paused the revealed plans and capital deployment for the remaining Phase II areas of the Delta Facility.

"Our goal is to ensure that our current licensed production assets are operating at design capacity, and we achieve efficient sell-through rates while continuing with our organic expansion strategy," Arbuthnot added.

Photo courtesy of Delta 9

 

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