Capitalizing on Canada’s Growing Extracts Business
December 21st, 2017
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Canada’s cannabis industry is projected to reach $22.6 billion over the coming years, according to Deloitte, driven by the legalization of recreational marijuana next year. While dried cannabis has been the major focus to date, cannabis oils and extracts have experienced a tremendous increase in popularity – mirroring trends in the United States. Investors interested in the space may want to consider companies focused in these areas.
In this article, we will look at Quadron Cannatech Corporation (CSE: QCC) and how it’s positioned to capitalize on the growth in cannabis oils and extracts via its innovative extraction technology that it’s already selling to licensed producers.
The Rise of Oils & Extracts
Canada’s cannabis industry began with dried cannabis that could be smoked by patients with certain medical conditions referred by a qualified physician. With only about 20% of the population smoking tobacco, these arcane rules meant that non-smokers either had to begin a questionable new habit or forego the potential benefits of cannabinoids. Fortunately, the latest Access to Cannabis for Medical Purposes Regulations (ACMPR) legalized oils and extracts.
Although edibles products remain illegal for sale in Canada, extract-based products have become extremely popular alternatives to dried cannabis buds. Cannabidiol (CBD) capsules have made it possible to realize the non-psychoactive benefit of cannabis, while flavored vapour oils have reduced many of the risks of smoking dried cannabis. Extracts have become the fastest growing category of cannabis products across the country.
According to Health Canada, cannabis oil sales by licensed producers accounted for roughly half of their overall sales, as of March 2017. These trends are mirrored south of the border in the United States where edibles have been legalized in many states. In California, a February 2017 study found that the sale of cannabis oil cartridges rose 24% from 6% of total sales in just one year, representing an enormous 400% increase.
Empowering Licensed Producers
Quadron Cannatech Corporation (CSE: QCC) specializes in the research and development of cannabis extraction equipment for authorized cannabis participants. In particular, its BOSS CO2 Extraction System combines proprietary max flow technology with advanced thermodynamics, automated features, and an exclusive plug-and-play design to cost-effectively produce extracts. The machine requires only a fraction of the space and energy of comparable systems on the market.
The system’s core features include:
- Automated software with remote monitoring and control
- Software collects, stores, and analyzes data for research and development
- Programmable cycles that maximize extraction and separation efficiency
- Plug and play self-contained system with no setup required
- Simplified assembly with only two pieces of equipment, two plugs, and four hoses
- Integrated heat exchanger with proprietary thermodynamics
- High precision operating parameters for accurate performance
- Ability to collect extract during runtime
After debuting the product at the MJ Biz Con in Las Vegas, the company reported ‘extraordinary’ interest across the industry. The company has already completed the first sale of its BOSS CO2 Extraction System to Quintent Ventures Inc., an ACMPR late-stage applicant located in Vernon, British Columbia. The move could pave the way to additional sales to other industry participants that have expressed interest in the commercially-available product.
“In developing our extraction system, we engaged with a broad base of industry participants and listened to their needs,” said CEO and President Rosy Mondin. “Utilizing military-grade craftsmanship, precision engineering, and state-of-the-art automation, our team worked tirelessly to achieve our goal of delivering the most advanced CO2 extraction technology specifically designed for the cannabis industry.”
Quadron Cannatech Corporation (CSE: QCC) aims to capitalize on the tremendous growth in the cannabis oils and extracts business by providing the “picks and shovels” for authorized cannabis participants. Investors interested in exposure to the space may want to consider the stock as an alternative to cultivators.
For more information, visit the company’s website at www.quadroncannatech.com.
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