Cansortium’s Canadian Licensing Advances International Expansion
June 11th, 2019
App, Exclusive, News, Top Story
While plenty of US-based companies are operating in Canada, and Canadian-based companies in the US, it is rare to see a company operating in both the US and Canadian markets, meaning that most of them are missing out on the full scope of opportunity presented by the North American cannabis market.
Florida-based Cansortium Inc. (CSE: TIUM), a leading cannabis multi-state operator working to redefine the standards for cannabis care, is establishing a Canadian footprint in order to realize the opportunities presented on both sides of the border.
Although cannabis is still technically illegal under US federal law, 33 states have legalized cannabis in some form, most for medical purposes, while ten of them along with Washington DC have legalized cannabis for recreational purposes (Illinois looks to join their ranks in the near future), and another 14 have legalized CBD. 2018 was a banner year for the US market, and its value is estimated to grow from $10.4 billion to $16 billion this year.
According to a recent report by Brightfield Group, based on existing sales figures, the Canadian cannabis market is expected to reach $5 billion by 2021, while Deloitte estimates the Canadian market for derivative products – which are set to be legalized in October – to be worth $2.7 billion annually, with edibles leading with $1.6 billion alone.
So the total market is huge, and presents a wonderful opportunity for those with the foresight to cross the US-Canada border.
Maturing Canadian Market Means Opportunity
Cansortium announced on May 6th that Health Canada has granted Cansortium Canada, the company’s wholly-owned Canadian subsidiary, a cannabis cultivation, processing, and
medical sales license, authorizing it to cultivate and process cannabis containing both THC and CBD, as well as distribute seeds and plant materials to authorized provincial and territorial distributors and retailers, and sell fresh and dried flower as well as cannabis oil directly to registered patients in Canada.
Recently-announced changes by Health Canada require applicants for licenses to cultivate, process, or sell cannabis to have a fully-built site that meets the requirements of its cannabis regulations at the time they submit their application.
Cansortium Canada controls a facility in Grimsby, Ontario consisting of 21,780 sq. ft. of greenhouse cultivation space, 3,468 sq. ft. for processing, and 8,500 sq. ft. of physical plant. The campus is approximately 85% complete for phase 2, planned to be completed in Q3, 2019, which will increase the total cultivation space to 100,200 sq. ft with an expected minimum annual production of up to 3,320 kgs of dried cannabis and derivatives.
Cansortium Founder & CEO Jose Hidalgo said, “After more than a year and a half of dedicated and diligent work on the process, securing our Canadian license is a significant milestone on our path toward becoming a truly global cannabis company. We are excited to begin operations immediately at our cultivation and processing facility in Grimsby, Ontario and to introduce our premium-grade Fluent Cannabis Care products to the progressive Canadian medical market.”
Cansortium’s Canadian operations also include industrial hemp cultivation and production operating under its majority-owned subsidiary, Arcadia EcoEnergies Ltd. in New Brunswick, consisting of nearly a thousand acres of hemp cultivation in 2018, where Arcadia produces seed for the processing of hemp oil, hemp meal and hemp protein powder.
Cansortium Canada to Mirror Successful US Operations
The style of operation in Grimsby will be similar to facilities the company currently operates in Florida, Texas, and Colombia, where cannabis is grown using proprietary techniques that give it an advantage over competitors relying solely on legacy cultivation practices.
For example, Cansortium’s proprietary drying & extraction machinery requires only six hours per cycle, as opposed to the six-day process required using conventional methods, while preserving terpenes and whole plant profiles. Cansortium employs state-of-the-art supercritical CO2 extraction in order to maximize cannabinoid extraction without the use of solvents, and leverages its technological superiority to maximize gross margins and output quality.
Cansortium Going Global
Aside from its Canadian operations, Cansortium also has retail, cultivation, and processing operations in Texas, Pennsylvania, Puerto Rico, and a domestic expansion into Michigan – where license-holders are allowed an unlimited number of dispensaries – is currently underway, as well as Colombia, the anticipated hub of the red hot emerging Latin American market. The company is also engaged in strategic expansions into additional Latin American and European markets – which are expected to outpace the US and Canadian markets combined.
Cansortium has been a successful strategic early-mover in large markets with high barriers to entry, and its extensive regulatory expertise enables it to navigate the steadily-evolving national and international regulatory framework. Its Canadian operations uniquely position it to benefit from the steadily-growing North American market, and reinforce that it is executing on its international growth strategy.
Keep watching this page, or visit http://cansortium.com/ for more information.
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