Aphria, a medical marijuana supplier in Leamington, has a five-year deal to supply Shoppers Drug Mart.
Shoppers still needs Health Canada's approval to be a licensed producer. It has applied to sell medical marijuana products online. The products will be Aphria-branded.
"We have an impeccable record cultivating and producing high-quality, medical-grade cannabis," said Aphria CEO, Vic Neufeld in a release from the company. "These traits make us a strong partner for an organization looking to serve and support Canadian patients."
Neufeld told a conference call Monday the agreement comes after months of discussions between the two companies.
Although Neufeld did not discuss the financial implications of the agreement, he did say "the agreement is expected to have a positive, material impact on Aphria's medical sales revenue."
Aphria is currently undergoing a four-phase expansion to accommodate an increase in demand. That will increase the company's growing footprint to 1-million sq. ft. Eventually, it plans to produce more than 100,000kgs of cannabis in Leamington annually.
The products will not be available on store shelves.