Saskatchewan-based retail co-operative Weed Pool Cannabis Co-operative (WPCC) has signed a non-binding letter of intent (LoI) with cannabis-infused beverage maker BevCanna.

Under the (LoI), WPCC has agreed to sell and distribute BevCanna’s cannabis-infused beverages portfolio, as well as extracts across its cannabis retail distribution network in Saskatchewan.

WPCC president Jim Southam said: “We’re excited to be able to bring BevCanna’s upcoming line of cannabis-infused beverages and extracts to the Saskatchewan market.

“Our goal is to offer innovative, high-quality options to our consumers, and we expect BevCanna’s range of products to appeal to both current and new cannabis consumers.”

Under the agreement, BevCanna will provide finished cannabis and cannabis extract products to WPCC for distribution in the Saskatchewan market.

Execution of the agreement is subject to due diligence investigations by each partner, mandatory approvals from Saskatchewan Liquor and Gaming Authority (SLGA), as well as negotiation of the agreement and approval by each partner’s board of directors.

Within the next 120 days, BevCanna and WPCC intend to sign a definitive agreement.

WPCC is said to be the largest cannabis buying group in Saskatchewan representing more than 50% of licensed cannabis sales in the province and is licensed by SLGA.

BevCanna chief strategic officer John Campbell said: “Our goal is to work with leading distributors in their regional markets, and WPCC fits the bill very well.

“As a group of independent retailers operating storefronts in the province, WPCC has an excellent understanding of the retail landscape across the province and a strong sales strategy for the nearly 20 Licensed Retailers that they represent.

“They have also developed good working relationships with the provincial bodies overseeing the cannabis market, which will benefit us as we launch our line of cannabis-infused beverages and extracts into the province.”

In May, BevCanna signed a non-binding letter of intent (LoI) with Maritime-based licensed cannabis producer Argentia Gold.