Harvest One Cannabis Inc (CVE:HVT) (OTCMKTS:HRVOF) struck an agreement Monday to be a medical cannabis supplier to Shoppers Drug Mart through its wholly-owned subsidiary and cultivation arm United Greeneries Ltd.

Under the terms of the deal, Harvest One will supply Shoppers Drug Mart with Satipharm branded medical cannabis products for its online medical cannabis website. Canadian regulations still restrict the sale of medical cannabis through pharmacies.

"We are incredibly proud to be working with Shoppers Drug Mart to supply them with our premium, indoor grown cannabis under the Satipharm health and wellness brand," said Harvest One CEO Grant Froese. "We see this supply agreement as a further step towards fulfilling our vision of being a vertically integrated house of brands in the cannabis health, wellness, and self-care sector.”

Harvest One climbed 17.4% to US$0.70 on the OTC Markets, while it went up nearly C$15.1% in Canada. 

United Greeneries has two main facilities, the Duncan Facility on Vancouver Island in British Columbia and the Lucky Lake Facility in Saskatchewan.

The Duncan Facility has 10,000 square feet of cultivation area and is licensed to cultivate and distribute medical marijuana by Health Canada. It has an in-house biochemical and analytical lab.

The facility can produce 1,000 kilograms of cannabis per annum, according to the company’s website.

This marks the first time that Satipharm branded cannabis will be available for purchase in Canada.

Incorporating two strains

The company said that it would work with Shoppers Drug Mart to help consumers make educated decisions. All Satipharm products will be color-coded to indicate their position on the progression chart from the high THC of SatiWhite to the high CBD of SatiPurple.

United Greeneries will produce and ship an Indica variety of SatiSilver and a hybrid variety of SatiGreen.

The two major types of cannabis plants are Indica and Sativa. Each strain has it's own range of effects on the body and mind resulting in a wide range of medicinal benefits. Indica strains generally provide a sense of deep body relaxation. Sativa strains tend to provide a more energizing experience.

“We continue to expand our capacity to support our growing brand portfolio which includes our recently announced transaction with Delivra as well as our existing brands Dream Water, Satipharm, Royal High, and Captain's Choice" said Grant.

Dream Water is an all-natural, zero calorie sleep aid that is already available in 30,000 stores across the US and Canada. Comprised of three active ingredients (GABA, Melatonin and 5-HTP), the sleep aid caters to people who face difficulty falling asleep. Harvest One is now formulating a cannabidiol (CBD) version of Dream Water that will be made available where it is legal.

Vancouver-based Havest One serves as an umbrella over three wholly-owned subsidiaries: United Greeneries, which is a licensed producer; Satipharm, which develops cannabis-based health products; and Dream Water, which offers consumer sleep aids.