The Vancouver company's supply agreement is with British Columbia Liquor Distribution Branch, one of the two branches of government responsible for the alcohol and cannabis industries in the province.
Pure Sunfarms now has licenses to sell in British Columbia and Ontario, Canada's largest province, giving the company access to more than half of Canada's population.
The company said it would begin shipping packaged product to the British Columbia agency as well as to Ontario Cannabis Retail Corp., the province's only online retailer and wholesaler of legal recreational cannabis.
"This supply agreement for Canada's third most populous province will significantly expand Pure Sunfarms' market reach when it begins sales directly to provincial and territorial wholesalers," Village Farms CEO Michael DeGiglio said in a statement.
Village Farms shares were up 3.8% to $11.21 Wednesday afternoon.