When Canada legalized recreational use of cannabis products in the last year, most of the cannabis companies focused only on developing THC products. These companies did not anticipate the demand for CBD infused products, leading to a major shortage of products in the market according to some companies.
Khurram Malik, the CEO of Biome Grow, which is licensed to deal in cannabis-related products, in the Canadian Atlantic provinces, claims that despite the demand for cannabis products with a high CBD content, most retailers and customers are unable to find suppliers of suitable products.
Both the marijuana and hemp plant contain molecules of CBD oil, which has become extremely popular in recent years, since it is being promoted as a one-stop solution for all problems. In reality, the medicinal properties are still being researched. The marijuana plant is usually grown in greenhouses, with a higher cost of production, while the hemp plant is grown in fields, lowering the cost of producing CBD oil significantly. Another Canadian cannabis company, Canopy Growth Co has a hemp facility in Saskatchewan for extracting CBD and its CEO Bruce Linton announced that the company was planning to invest $150 million to set up a similar facility in New York State.
In Canada, only the licensed cannabis producers can extract CBD oil from hemp, and it is sold only in liquid form. Biome Grow announced a deal with CBD acres recently for the purchase of 20,000 kg of CBD concentrate which was derived from the hemp plant. Another cannabis company Aurora Cannabis announced that it had completed the purchase of a European hemp producer Agropro, which has more than 4000 acres of land in various East European countries for growing hemp. Aurora plans to extract CBD from the hemp and use it in wellness products which will be sold in Europe.
Licensed cannabis producer WeedMd has announced a joint venture for the manufacture of CBD infused beverage and food products with a CSE listed company, Phvidia holdings. A production facility is being constructed which should be ready in October 2019.
Navdeep Dhaliwal, the CEO of the Ontario based Supreme Cannabis Company claims that his company is focusing mainly on genetics and cultivation to ensure that the flowers contain a higher percentage of CBD oil. True North Cannabis Corp is collecting the hemp waste from the farmers, removing all the waste, to ensure that the remaining biomass is rich in CBD oil.
