WEED GROWER SOUGHT TO BE FEDS' OFFICIAL SUPPLIER

Medical Marijuana

OTTAWA -- Health Canada is looking for someone to grow its weed.

The department served notice yesterday it soon will invite firms to
bid on a contract to cultivate and distribute medical marijuana,
which is now being done in Flin Flon, Man., by Prairie Plant Systems Inc.

The winning firm will be expected to deliver a steady stream of
government-approved dope to certified medical users starting in the fall.

Health Canada posted a notice on a government tenders website saying
it would put out a formal request for proposals in the spring of
2008, without specifying a date.

Ottawa has been a reluctant supplier of pot since a series of court
rulings forced it into the medical marijuana business.

The marijuana program licenses certified medical users to grow their
own pot, to have someone grow it for them or to buy it straight from
Health Canada.

The department has paid Prairie Plant Systems more than $10 million
to cultivate government-certified dope in a mine shaft in Flin Flon, Man.

The company couriers the weed directly to users in 30-gram packets.

Health Canada first awarded Prairie Plant Systems the deal in late
2000 and has been extending it in six-month increments since 2006,
says company president Brent Zettl.

He added the company has to decide whether it will bid on the new
contract, although he expects it will.

"We didn't expect that this process would be able to continue . . .
These are the rules that they have to abide by," Zettl said.

"We had anticipated internally that something would have to happen.
We expected it would be something along these lines."

The winning firm could wind up in the advantageous position of one
day being the sole supplier of medical marijuana.

Health Canada has said it plans to eventually end its licensing of
homegrown weed. That would force all medical users to buy their
supplies directly from Ottawa, perhaps through pharmacy distribution.