#Cannabis 2.0 is
Really Here – #Stocks to Watch (CSE: $XTRX.C) (TSX-V: $RTI.V) (TSX: $VLNS.TO)
(CSE: $OILS.C) @adastra_labs @RadientInc @TheValensCo @nextleaf_oils
New
Distribution and R&D Bolster Extract Capabilities
Point
Roberts WA, Delta, BC –April 28, 2021 - Investorideas.com, a
leading investor news resource covering cannabis and hemp stocks releases a
special report on the accelerated growth within the extracts and “Cannabis 2.0”
categories as more companies further distribution and expand R&D
capabilities, featuring Phyto
Extractions Inc. (formerly Adastra
Labs Holdings Ltd.) (CSE:XTRX).
Read this article,
featuring XTRX in full at https://www.investorideas.com/news/2021/cannabis/04281XTRX-RTI-VLNS-OILS.asp
The global cannabis extract market
size was valued at USD 7.3 billion in 2019 and is anticipated to register a
CAGR of 16.6% over the forecast period to 2027 says Grandview Research.
One company set to capitalize on this extract growth is Phyto Extractions Inc. (formerly Adastra Labs Holdings Ltd.) (CSE:XTRX). Phyto Extractions™ is an agricultural-scale cannabis extraction, distillation and product manufacturer located in Langley, BC at its co-located Health Canada Licensed Standard Processing (extraction and products, no cultivation), Sales (extracts, topicals and edibles) and R&D through Adastra Labs Inc. and Analytical Testing Laboratory through Chemia Analytics Inc.
According to Phyto Extractions
news, “The current cannabis extract market has seen a huge
boom in sales from the past year, in which demands for cannabis extracts are
rising steadily. Canadian cannabis extract sales observed an exponential 315%
growth rate for the past two years, from 320,201 non-medical sales in Oct. 2019
to 1,328,769 sales in Oct. 2020, and over 200% sales growth rate including all
medical and non-medical sales. Rising demand for cannabis extract products
requires reasonable supplies from producers for cannabis enthusiasts.”
The Company recently announced that it
has received its Health Canada R&D license addendum in Adastra Labs Inc.
that will permit some limited human testing by licensed researchers
administering or distributing cannabis to human research subjects using
cannabis obtained from a holder of a license for processing in the final form
of cannabis.
This R&D license addendum will
permit the Company to conduct in-house human testing for taste of various
cannabis products for assessment of taste, sights, smell, or touch of cannabis.
"We look forward to initiating
human-studies and generating valuable consumer-based data to support our
product development pipeline and continue delivering high-quality efficacious
cannabis products to Canadians," stated Dr. Kyle Boniface, PhD.
The Company also announced
on April 21st they are now
producing cannabis shatter products for the Canadian market after wholly-owned
subsidiary Adastra Labs Inc.'s commissioning of new hydrocarbon extraction
equipment ahead of schedule.
From the news: “With the arrival of
the ExtractionTek Solutions MeP XT70 system, a high-performance hydrocarbon
extractor, the team at Phyto Extractions can now process over 400 KG per day of
cannabis biomass into a variety of hydrocarbon cannabis concentrate products.
Focused on shatter production currently, this translates into over 50kg of
high-quality product output per day.”
From the news: “Phyto Extractions™
has launched three new shatter cannabis products: Pink Kush, Blue Gorilla OG,
and D. Bubba that will serve the over 9 million Canadians currently in the
cannabis market with its one-gram offerings. The Company's increasing market
share in the disposable vape, vape cartridge, and live resin markets,
strengthens the brand's launch of its new flagship 'shatter' product line.”
From the news: “With relatively few
players in the niche of shatter product space in Canada, this market expansion
represents a significant opportunity given the forecasted growth of the
Cannabis extract market.”
Shatter video: https://youtu.be/Bo4VWLSAT7o
Radient
Technologies Inc. (TSX-V:
RTI)
(OTCQX:
RDDTF), a cannabis
company utilizing a proprietary extraction and downstream processing platform, in
December 2020 announced its
licensing agreement with Tunaaaaroom to manufacture and distribute a wide range
of premium cannabis extracts targeting recreational cannabis consumers in
Canada. Radient will make use of its Health Canada Cannabis Research and
Analytical Testing licenses to fully characterize the Tunaaaa strains and
evaluate the sensory qualities of extracts formulated to mimic the specific
terpene profiles and containing differing cannabinoid profiles and potencies.
Based in Edmonton, Tunaaaa has spent
over six years developing the genetics for over 1,000 high-quality cannabis
strains containing proprietary terpene profiles. Through this licensing deal,
Radient will gain access to Tunaaaa’s specific genetics and will engage the
Tunaaaa breeders as consultants to help drive product development.
Radient will further make use of its
Standard Processing and Sales Licenses to rapidly launch premium distillate dab
and vape extracts. Radient plans to bring Tunaaaa’s vast catalogue of unique
flavours to the market with monthly drops of new terp profiles. Radient and
Tunaaaa will also work in collaboration on CBD and CBN distillate dabs to
create additional unique terpene extract products for recreational cannabis
consumers.
Future Radient extract products may
include Cannabis 2.0 products like diamond, shatter, caviars, live rosin, terp
sauce as well as micro cannabinoid isolates and edibles.
The
Valens Company Inc. (TSX:
VLNS) (OTCQX:
VLNCF), a leading manufacturer of cannabis products,
specifically in the Cannabis 2.0 product category recently
announced expansion of its distribution in both Manitoba and the
Yukon, having entered into an agreement with the Manitoba Liquor &
Lotteries Corporation to supply and distribute a wide range of cannabis
products to LGCA-licensed private retailers in the Province of Manitoba, as
well as its entry into the Yukon market with a cannabis purchase and sale
agreement with the Yukon Liquor Corporation (YLC). With this agreement, Valens
expands its distribution network to five provinces in the country.
"Expanding our domestic
distribution capabilities is one of our top strategic initiatives to drive
growth this year and beyond," said Tyler Robson, Chief Executive Officer,
Co-Founder and Chair of The Valens Company. "Our entry into the Manitoba
market takes us a step further toward capturing larger market share and
bringing the Valens advantage to consumers in a new province, enabling greater
access to our high-quality products across Canada."
"Our entry into the Yukon
market not only furthers our ability to capture market share in Canada, but
also broadens the selection and quality of products that consumers in the
territory can access," continued Tyler Robson. "We have made
significant progress growing our cannabis distribution network and we expect to
increase our national position in the short-term as we continue discussions
with other private and government-regulated retailers across the country."
Valens has already shipped several
products to the province, including A1 Cannabis' Summit 10 THC beverages, Verse
Cannabis' Tropic Lemon and Sunset Peach vape carts and 1:20 CBD oil, with
additional product formats across various categories expected to be shipped in
the coming weeks.
Nextleaf
Solutions Ltd. (CSE:
OILS) (OTCQB:
OILFF), the world's most innovative cannabis processor, announced in
March, 2021 that it has commenced human trials of cannabis vapes.
Under its amended Cannabis Research
Licence from Health Canada, Nextleaf is collecting sensory evaluation data from
qualified volunteers completing organoleptic assessments of a wide variety of
formulated cannabis vape products. The Company is comprehensively testing a
range of cannabinoid and terpene formulations, including how various vape
hardware interacts with different formulations. Nextleaf expects to accelerate
product development and drastically shorten design cycles for launching new
cannabis vape products by validating formulations and delivery technologies
more efficiently.
Forbes wrote a feature around
Nextleaf's human trial program on March 30, 2021 and the article can
be read here.
"The amended Cannabis Research
Licence allows Nextleaf to rapidly formulate a wide variety of cannabis
products and administer samples to volunteer research participants," said
Nextleaf Solutions R&D Lead, Dr. David Novitski. "The ability to
provide commercial partners with data-based consumer insights around taste and
overall user experience is a true game changer for product development."
Since becoming legal in Canada,
vapes have emerged as the clear leader of all cannabis 2.0 products. According
to the most recent data from the Ontario Cannabis Store, the vape category
ranks second only to dried flower with 15.7% of all Ontario cannabis sales. In
more mature adult-use markets like Colorado, Oregon, and Washington, the market
share for cannabis vapes reached as high as 22.3%, according to data from
Headset. As Canada continues to roll out brick and mortar cannabis retail
stores, the vape segment is expected to continue to increase in overall size
and market share. The Company believes the CBD vape subcategory could see
significant growth should Health Canada regulations change to allow for
increased legal access to CBD products. Nextleaf plans to validate its
proprietary CBD vape technology under its amended Cannabis Research Licence.
Collecting data-based consumer
insights is particularly important in an increasingly competitive market in
which initial product launches can dictate the long-term success of a brand.
"There are a lot of subpar vape
products available in the market today that have not gone through rigorous
testing and human trials," said Nextleaf Solutions CEO Paul Pedersen.
"Issues such as poor taste, clogging, leaking, and crystallization in CBD
vapes are well documented throughout the industry. Collecting consumer feedback
during product development is key to launching differentiated cannabis 2.0
products that provide consumers with a positive experience and value."
Considering the recent cannabis
investments by large pharmaceutical and tobacco companies, it is apparent that
generating and protecting intellectual property is becoming more important in
the next phase of the industry's maturation. Management believes Nextleaf is
well positioned with its product innovation pipeline and success securing
issued patents in the United States. Nextleaf owns 12 US patents and has been
issued over 70 patents globally. Innovation is core to Nextleaf's value
proposition, and its ability to differentiate with its patented and patent
pending cannabinoid delivery technologies and formulations. The amended
Cannabis Research Licence allows Nextleaf to continue to develop, validate, and
strengthen its R&D within a federally legal market.
As we see more extract companies
expanding their R&D and distribution capabilities, we see a three-fold gain
to the industry. This will create accelerated growth and competition in the
category, higher quality products for consumers which will be more effective
through proper research, as well as important industry data points through
having access to proper research techniques which can have a massive benefit to
both the medical and recreational market moving forward.
As both the Canadian and US cannabis
industries begin to enter into a state of maturation and stability we see the
Cannabis 2.0 product category continue to gain a larger sales footing which can
only be expected to grow further as consumer awareness rises along with product
consistency and availability.
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