Invest in the Solution to Canada’s Cannabis Pesticide Problem


Ryan Allway

October 17th, 2017

Exclusive, News, Top Story


Canada’s cannabis industry is projected to reach $22.6 billion over the coming years, according to Deloitte, but there have been growing pains along the way. A steady stream of cannabis recalls has prompted regulators to call for the mandatory testing of cannabis for unauthorized pesticides. With only a handful of third-party laboratories licensed to test cannabis, investors may want to take a look at public companies in the space.

Product Recalls Present a Problem

There have been at least ten product recalls from a wide range of licensed producers over the past year, according to government notices. Many of these recalls were made after finding banned pesticides – such as myclobutanil and bifenazate – that exceed levels permitted in food production. Unfortunately, many consumers don’t track these notices on a regular basis and often end up consuming tainted product – a big problem for the industry.

The Access to Cannabis for Medical Purposes Regulations makes it clear that only the 17 pesticides listed under the Pesticides Act for use on cannabis crops may be used at any point in cannabis production. There are no exceptions to these requirements and no situations where using an unauthorized pesticides would be acceptable. But, many licensed producers still seem to be struggling in their adherence to these rules over time.

The Canadian government recognized this problem and announced that it would begin a series of unannounced inspections in May. As part of the inspection, Health Canada found banned pesticides in two of the seven licensed producers that it tested and subsequently announced that it would require all licensed producers to conduct mandatory testing of all cannabis products destined for sale for the presence of unauthorized pesticides.

Investing in Laboratory Testing

Many licensed producers have their own internal laboratory testing facilities, but the string of product recalls has called their accuracy into question. Third party laboratories may be better equipped to effectively test for pesticides – as well as cannabinoid content – while avoiding any potential conflicts of interest. While federal guidelines are unclear whether testing will have to be independent, there’s no question that independent testing is a best practice.

Through its wholly-owned subsidiary, Abattis Bioceuticals Corp. (CSE: ATT) (OTCQB: ATTBF) is one of the only publicly-traded third-party cannabis testing laboratories. In addition to its pure-play status, the company operates in British Columbia, which is home to 15 licensed producers. The company’s services could become increasingly in-demand as Health Canada unveils new regulations and consumers seek out products that have been reliably tested.

Cannabis testing and analysis opportunities such as Abbatis offer less regulatory risk versus the highly regulated cultivation side.  Furthermore, there are significant growth opportunities from increased regulations. In fact, Markets and Markets believes that the cannabis testing industry could reach nearly $1.5 billion by 2021, which represents an 11.5% compound annual growth rate that could accelerate if more regulations come into effect.

Looking Ahead

Abattis Bioceuticals Corp. (CSE: ATT) (OTCQB: ATTBF) represents a compelling opportunity in the cannabis industry. With a growing number of issues with tainted product, Health Canada has indicated that it would begin regulating the market. Third-party testing could become a big part of the business given the conflict of interest stemming from self-testing, while investors also benefit from Abattis’ other business holdings.

Abattis is well positioned to be a leading full suite downstream service provider for the entire cannabis industry.  Whether it is research and development, extraction and formulation, testing and analysis or sales and distribution, Abattis wants to develop itself as a leading service provider as the industry continues to evolve and more and more cannabis supply hits the market.  By becoming a go-to resource, the company could gain valuable exposure to the industry without as much regulatory risk as pure-play cultivators or retailers in the medical or recreational cannabis space.

For more information, visit the company’s website or CFN’s company profile.

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.


Network Partners

Follow Us on Social Media

About CFN Media Group

CFN Enterprises Inc. (OTCQB: CNFN) owns and operates CFN Media Group, the premier agency and financial media network reaching executives, entrepreneurs and consumers worldwide. Through its proprietary content creation, video library, and distribution via www.CannabisFN.com, CFN has built an extensive database of cannabis interest, assisting many of the world’s largest cannabis firms and CBD brands to build awareness and thrive. For more information, please visit www.cfnenterprisesinc.com.

Disclaimer: Matters discussed on this website contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time-to-time have a position in the securities mentioned herein and will increase or decrease such positions without notice. The Information contains forward-looking statements, i.e. statements or discussions that constitute predictions, expectations, beliefs, plans, estimates, or projections as indicated by such words as "expects", "will", "anticipates", and "estimates"; therefore, you should proceed with extreme caution in relying upon such statements and conduct a full investigation of the Information and the Profiled Issuer as well as any such forward-looking statements. Any forward looking statements we make in the Information are limited to the time period in which they are made, and we do not undertake to update forward looking statements that may change at any time; The Information is presented only as a brief "snapshot" of the Profiled Issuer and should only be used, at most, and if at all, as a starting point for you to conduct a thorough investigation of the Profiled Issuer and its securities and to consult your financial, legal or other adviser(s) and avail yourself of the filings and information that may be accessed at www.sec.gov, www.pinksheets.com, www.otcmarkets.com or other electronic sources, including: (a) reviewing SEC periodic reports (Forms 10-Q and 10-K), reports of material events (Form 8-K), insider reports (Forms 3, 4, 5 and Schedule 13D); (b) reviewing Information and Disclosure Statements and unaudited financial reports filed with the Pink Sheets or www.otcmarkets.com; (c) obtaining and reviewing publicly available information contained in commonlyknown search engines such as Google; and (d) consulting investment guides at www.sec.gov and www.finra.com. You should always be cognizant that the Profiled Issuers may not be current in their reporting obligations with the SEC and OTCMarkets and/or have negative signs at www.otcmarkets.com (See section below titled "Risks Related to the Profiled Issuers, which provides additional information pertaining thereto). For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity-based compensation in the companies it writes about, or a combination of the two. For full disclosure, please visit: https://www.cannabisfn.com/legal-disclaimer/. A short time after we acquire the securities of the foregoing company, we may publish the (favorable) information about the issuer referenced above advising others, including you, to purchase; and while doing so, we may sell the securities we acquired. In addition, a third-party shareholder compensating us may sell his or her shares of the issuer while we are publishing favorable information about the issuer. Except for the historical information presented herein, matters discussed in this article contain forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. CFN Media Group, which owns CannabisFN, is not registered with any financial or securities regulatory authority, and does not provide nor claims to provide investment advice or recommendations to readers of this release. CFN Media Group, which owns CannabisFN, may from time to time have a position in the securities mentioned herein and will increase or decrease such positions without notice. For making specific investment decisions, readers should seek their own advice and that of their own professional advisers. CFN Media Group, which owns CannabisFN, may be compensated for its Services in the form of cash-based and/or equity- based compensation in the companies it writes about, or a combination of the two. For full disclosure please visit: https://www.cannabisfn.com/legal-disclaimer/.

Copyright © Accelerize Inc. · All Rights Reserved · Privacy Policy · Legal Disclaimer

loading