Rising Demand for Cannabis Oils Pushes Canada’s Producers into Overdrive

NetworkNewsWire Editorial Coverage: Licensed cannabis producers in Canada are growing at remarkable pace, swept forward by the country’s legalization of medicinal marijuana in 2001 and impending legalization for recreational use of the plant, set for July 1, 2018. Amid demand for cannabis in various forms, oils are a significant contributor to the growth of leading producers that are keeping an eye on evolving market trends (http://nnw.fm/Xa32z). Key industry players such as ABcann Global Corp. (OTCQB: ABCCF) (TSX.V: ABCN) (ABCCF Profile), Emblem Cannabis, Inc. (OTC: EMMBF) (TSXV: EMC), Emerald Health Therapeutics, Inc. (OTCQX: EMHTF) (EMH: CC), OrganiGram Holdings, Inc. (OTC: OGRMF) (CVE: OGI) and Supreme Pharmaceuticals, Inc. (OTC: SPRWF) (TSXV: FIRE) are leading the industry and adjusting their strategies to include mounting consumer demand for oils.

ABcann Global (OTCQB: ABCCF) (TSX.V: ABCN) is leveraging its position as a globally licensed, cost efficient producer of premium quality organic standardized medicinal cannabis to expand its product line to include cannabis oils. As one of Canada’s first licensed cannabis producers, ABcann is significantly ahead of the curve when it comes to production capacities. The company’s licensed and fully operational Vanluven Facility produces 1,000 kg annually. Construction on the company’s Kimmett facility, an industry-leading, purpose-built, world class style facility, is under contract with another 65 acres under full Abcann ownership for future expansion plans. As noted in its corporate presentation (http://nnw.fm/W6rbx), ABcann’s yield per square foot is 100 percent over the industry average.

Pivoting off its deep roots in pharmaceutical-grade cannabis, ABcann’s wholly owned ABcann Medicinals, Inc. subsidiary in August launched CBD-Med, one of Canada’s highest legal CBD:THC (cannabidol:tetrahydrocannabinol) ratio products available on the market (http://nnw.fm/sYv7g), under Health Canada regulations.

The launch of CBD-Med is on par with ABcann’s broader strategy to diversify its product line and capture its share of demand for cannabis oils. Products that ABcann will have available for patients are expected to include a 1-1 THC/CBD drop, a high THC dropper and a high CBD dropper.

“The development of these products is in line with ABcann’s corporate strategy as a premium product provider of organic, pesticide free cannabis,” ABcann’s executive chairman stated in the press release. “As the Company continues to scale production capacity, our product line will expand as we strive to increase shareholder value through capturing a larger market share of the current global medical markets.”

CBD-Med’s high CBD content is a vital differentiating factor. Although the virtues of THC have been loudly sung, many patients exhibit adverse reactions, such as short-term memory impairment, dysphoria (feeling uneasy for no apparent reason), increased levels of anxiety and even panic attacks to the cannabinoid. On the other hand, CBD is devoid of such side effects and, moreover, appears to mitigate the injurious effects of THC when taken in conjunction with it.

More than half (54%) the cannabis strains on the Canadian market have a high THC-CBD ratio, with THC over 15% and CBD less than 1%. Many others (29%) have less THC but negligible amounts of CBD, with THC less than 15% and CBD below 1%. Only 14% of strains have both THC and CBD levels that exceed 5%. And just 3% of strains have less than 1% THC and more than 9% CBD, a highly prized category in which CBD-Med can be found.

Emblem Cannabis, Inc. (OTC: EMMBF) (TSXV: EMC) is also strategizing for its share of the market. Earlier this month the company was granted a license to sell cannabis oils (http://nnw.fm/0rdcB). Late last year, Emblem was granted a supplemental license for the production of cannabis extracts. John Stewart, President of Emblem’s Pharmaceutical Division has emphasized the importance of this license to the company’s plan to provide high quality, differentiated cannabis products, in a variety of formats. Emblem plans to offer a selection of cannabis oils, including those from CBD dominant strains, THC dominant strains and strains with both CBD and THC content. The company believes cannabis oils and related formulations provide a level of consistency and dosage accuracy that cannot be achieved with dried flower. Such products also provide a method of consumption that many consumers find to be substantially more precise and convenient.

Meanwhile, Emerald Health Therapeutics, Inc. (OTCQX: EMHTF) (EMH: CC), through its Emerald Health Botanicals subsidiary, as a licensed producer is already offering eight oils with varying levels of THC, THCA, CBD, and THC to CBD ratios. The product line includes the company’s recently launched CBD-25 and CBD-50 medical cannabis oils containing approximately 25 milligrams and 50 mg of CBD per milliliter (http://nnw.fm/mSfc3). The company believes that CBD-50 will provide a unique treatment option to doctors and patients seeking high CBD potency with minimal THC. Its management is of the opinion that CBD-50 contains the highest amount of CBD per milliliter on the ACMPR market today. Emerald Health Botanicals is now licensed to produce and sell both dried medical cannabis flower and medical cannabis oil in Canada. The subsidiary currently operates an indoor facility in Victoria, BC, and is making progress on expansion plans for a 32-acre property in Metro Vancouver and a joint venture with Village Farms that utilizes a 25-acre existing greenhouse complex in Delta, BC.

Moncton, New Brunswick-based OrganiGram Holdings, Inc. (OTC: OGRMF) (CVE: OGI) in June received an upgrade to its licensed producer status (http://nnw.fm/47QlM), allowing both the production and sale of cannabis oil extracts, as well as the company’s current dried medical cannabis products. Quickly acting on that approval, OrganiGram released Shubie, a pure CBD edible oil that expands its range of cannabis oil offerings. Shubie is an ethanol-extracted cannabis oil formulated in an organic sunflower oil base (http://nnw.fm/RTd4Y). This 50ml formulation boasts 23.7 mg/ml CBD and 1.39 mg/ml THC. Like the other oils in the OrganiGram line up, Shubie was named for an iconic Atlantic Canadian waterway, the Shubenacadie River.

Supreme Pharmaceuticals’ (OTC: SPRWF) (TSXV: FIRE) wholly owned 7ACRES subsidiary recently received approval from Health Canada to begin cultivation at its 30,000 square-foot flowering rooms at the company’s hybrid grow facility. The additional flowering rooms increases the size of 7ACRES’ flowering facility to 40,000 square feet. 7ACRES, and thus Supreme, also has its footing in oils via a retail partnership with Aurora Cannabis (TSX: ACB) (OTC: ACBFF). In its fourth-quarter financial results, Aurora said sales of dried medical cannabis and cannabis oils contributed $5.6 million to revenues, of which $0.4 million (7.1%) was generated in Germany and $5.2 million in Canada (http://nnw.fm/MOgY2).

Adoption of cannabis oil continues to increase as a preferred alternative to cannabinoid consumption, providing cannabis cultivators with an unprecedented market opportunity paced by rising consumer demand.

For more information on ABcann Global please visit: ABcann Global (TSX.V: ABCN) (OTCQB: ABCCF)

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