BURIN, N.L. — With a third local cannabis production agreement signed Monday, there’s an increased chance the bud you smoke will have been grown right here in Newfoundland and Labrador.
In a news release, the provincial government announced a production and supply agreement with Burin's Oceanic Releaf Inc., and its partner, Manitoba-based and publicly traded Delta 9 Cannabis Inc.
Oceanic’s plans involve retrofitting a 60,000 square foot former High Liner fish plant in Burin into a cannabis growing facility capable of producing at least 4,000 kilograms annually at full production.
The two-phase construction process will cost approximately $8.4 million, and will be completed by the summer of 2023.
Government says by 2024, the agreement will contribute an estimated $24.6 million annually to the provincial gross domestic product, resulting in 76 jobs through direct, indirect and induced employment, while providing nearly $3.2 million in wages and salaries. Oceanic Releaf has committed to maintaining a minimum of 23 person-years of employment annually for 20 years.
The agreement also allows Oceanic to access up to two retail licenses and supply its own stores, in addition to other Newfoundland and Labrador Liquor Corporation licensed retailers and its online shop.
Oceanic Releaf has committed to contributing $150,000 over five years to support cannabis research and development in Newfoundland and Labrador when their cannabis production facility is completed.
Along with previous agreements signed with Canopy Growth and Atlantic Cultivation Inc. and its partner, the Auxly Cannabis Group, there could be at least 32,000 kilograms of cannabis being grown per year by 2025.
