Cannabis oil is a significant revenue stream for licensed producers in Canada and this is a trend we expect to continue for the foreseeable future. Cannabis oil represents a fantastic opportunity and solution for licensed producers.
The opportunity is great because not only does the product generate more revenue for the company but it also has higher margins. Cannabis oil is also a great solution when a licensed producer has too much dried cannabis product. The process of turning dried product into oil increases the shelf life of medical cannabis.
Cronos Subsidiary Completes Initial Shipment
Earlier this week Cronos Group Inc. (MJN.V) (PRMCF) announced that one of its wholly-owned licensed producers, Peace Naturals Project completed its first shipment of medical cannabis oil to the Cayman Islands, marking the company's first exported extract based product.
Caribbean Medical Distributors purchased the cannabis oil and the company is working with Professional Pharmacy Services Ltd., located in the CTMH Doctors Hospital, in George Town, Cayman Islands.
Peace recently built out a commercial oil production lab that is expected to be fully operational following final approval from Health Canada in September. Peace has almost completed a new 28,000 sq. ft. greenhouse, which will provide low-cost cannabis for extraction as well as an additional 1,200 sq. ft. pharmaceutical-grade extraction lab.
Organigram Debuts Pure CBD Oil
Organigram Holdings Inc. (OGI.V) (OGRMF) launched a brand new, diversified cannabis oil product, expanding its cannabis oil product offerings. The new product is called Shubie and it is a pure CBD edible oil. This pure CBD product is a first for Organigram, complementing the company's existing line of medical cannabis oil products.
While Tetrahydrocannabinol (THC) has received the most attention out of all cannabinoids, which are the chemical compounds unique to cannabis that act upon the human body's cannabinoid receptors, research has shown that cannabidiol (CBD) provides a therapeutic or calming effect and does not get the user high.
