Cultivation and Global Expansion in the Cannabis Space
New York, NY May 13, 2019 – Stock Market Press is a leading financial news company that delivers up to date stock news, introduces private and public companies to a wide audience of investors, consumers, journalists and the general public via social media and a rapidly expanding network reviews some of the recent updates in the cannabis sector.
As we’ve discussed recently, cannabis companies are looking to secure their place in history and build long term, profit generating companies quickly. While this goal encompasses many areas of the industry, lets take a look at R&D and cultivation specifically.
While cannabis has been around and used for over 4,000 years, there is still a lot to learn about the benefits it can provide. As a result, companies like Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) are including R&D in their expansion plans.
Cronos Group Opens Cronos Device Labs, New Global R&D Center in Israel
Accelerates Efforts to Develop Next-Generation Vaporizer Products Designed Specifically for Cannabinoids
Cronos Group Inc. (NASDAQ: CRON) (TSX: CRON) (“Cronos Group” or the “Company”) [May 13th] announced that it is expanding its global infrastructure network and innovation capabilities with the opening of a cannabinoid device R&D facility, based in Israel (“Cronos Device Labs”). The state-of-the-art facility supports Cronos Group’s efforts to develop next-generation vaporizer products that are designed specifically for cannabinoid applications.
Cronos Device Labs, which is equipped with an experienced team of product development talent, advanced vaporizer technology and analytical testing infrastructure, serves as the global center of R&D for the Company’s vaporizer devices. The 23-member team at Cronos Device Labs, which brings to Cronos Group over 80 years of combined expertise in vaporizer development, is comprised of product designers, mechanical, electrical and software engineers, and analytical and formulation scientists. Cronos Device Labs significantly enhances Cronos Group’s technology and development capabilities and is expected to enable the Company to deliver expanded product offerings to customers that are specially tailored to cannabinoid use.
Cannabis industry breaks down into 2 main market components, CBD (non-psychoactive) and THC (psychoactive), when discussing medical and recreational product use. The benefits of both types are available to vaporizer users and further R&D will enhance this market.
In addition to R&D, grow space is another area we are seeing with significant expansion. New land as well as existing land is being converted for cultivation. There is also a large hydroponics cannabis industry, allowing for greenhouse as well as city plant production.
A report on development in the four western Canadian provinces that was prepared recently by RE/MAX indicates while there are other factors at play, like a rebounding economy and stabilizing oil prices, cannabis production is a major driving factor in boosting the commercial real estate market.
Canopy Growth announces offtake agreement with PharmHouse
Canopy Growth Corporation (“Canopy Growth” or the “Company”) (WEED.TO) (NYSE:CGC) is pleased to announce today that has signed an offtake agreement with PharmHouse Inc. (“PharmHouse”), a 49 per cent-owned joint venture of Canopy Rivers Inc. (RIV.V) (OTC:CNOPOF). Under the terms of the agreement, PharmHouse has agreed to allocate high quality cannabis flower from an additional 20 per cent of the flowering space available at its Leamington greenhouse facility over the next three years.
Boasting 1.3 million square feet of greenhouse grow space, and leveraging the resources of Canopy Growth, Canopy Rivers and its joint venture partner have worked diligently since October 2018 to prepare the facility for licensing. PharmHouse will leverage Canopy Growth’s genetics – selected and supplied by the Company – and flower will be returned to the Company to be sold under Canopy Growth’s diverse brands and banners. Under the terms of the new offtake agreement, PharmHouse is committed to producing GMP-certified, high quality cannabis flower within 18 months of its cultivation license and the flower must comply with the Company’s high standards for cannabis quality. GMP, or Good Manufacturing Practices, certification is the internationally recognized system to ensure all produced goods meet the highest consumer health and safety standards, allowing the Company to export the flower to its international divisions. Including this new agreement, 30 per cent of PharmHouse’s total flowering space has been committed to Canopy Growth.
This is the high quality product that will be in large demand by the market. Canada ran into shortages when they legalized recreational marijuana. Demand for top quality product is only going to increase as more people learn and use the products. Recent FDA approval for the first CBD based drug is only the start of a string of approvals which will further strain the current supply chain.
We expect to see significant increases in grow space and R&D throughout 2019 and beyond. Cannabis sector is still in its infancy and is expected to provide significant ‘early bird’ gains for investors for years and even decades to come.
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