SEATTLE, March 13, 2019 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- CFN Media Group (“CFN Media”), the leading agency and financial media network dedicated to the North American cannabis industry, announces publication of an article covering Indiva Inc’s (TSX-V:NDVA) strategic position in the extracts market. As the cannabis industry matures, extraction is becoming an increasingly important part of any successful venture, as consumers have proven they are more interested in derivative products than simply smoking flower. Extracted cannabis oils, both THC and CBD, are a critical component in a wide array of products in the medical and recreational markets.
Looking to hit the ground running when Canada legalizes edibles and other derivative products as early as October 2019, London-based INDIVA Limited (TSX-V:NDVA), a licensed supplier of medical-grade cannabis, is working to diversify its brand and enable its own in-house extraction.
According to Health Canada figures, cannabis oil in Q1 2018, months before the legalization of recreational cannabis, outsold flower by 56 per cent as medicinal patients looked to concentrates to alleviate a range of symptoms from chronic pain to seizures, and health practitioners preferred concentrates which enable more accurate dosing.
A report published last year by BDS Analytics and Arcview Market Research showed cannabis concentrate sales in adult legal markets have dominated retail sales, representing the fastest growing segment of the industry, ahead of both flower and edibles due to ease of use, discretion & portability, and potency. The report estimates the sale of concentrates alone will bring in $8 billion by 2020, the majority in the form of vape cartridges, which are seen to be beginner-friendly and easily branded.
The Indiva brand currently includes pre-rolls, accessories, and soon tinctures and capsules, but a range of other products has already been developed in anticipation derivatives legalization. The company went public in December of 2017, had $24 million on its balance sheet at end the end of Q3 2018, and a fully-funded $13.7 million expansion to its London facility is currently underway, which will result in a 40,000 square foot facility enabling extraction, expanded cultivation, R&D, product manufacturing, and even a retail space.
Investing In Extraction
Indiva announced at the end of January that it has hired Lucid Lab Group to design its extraction facility, which is planned to begin operation in Q3, 2019 and will serve as the centre of the company’s oil manufacturing and for the development of its cannabis extract-based products. The expected capacity of the system is 70 tonnes of biomass and some 4 million grams of distillate. Seattle-based Lucid is renowned for its design and operation of cannabis extraction facilities.
In September 2018, in order to advance commercialization of oil products more quickly and supplement planned internal production, Indiva entered into a cannabis concentrate program agreement with MediPharm Labs Inc. Indiva will supply dried cannabis to MediPharm, which in return, will provide cannabis oil to Indiva or to other licensed producers at the direction of Indiva. The program was established at no capital cost to Indiva, but MediPharm will charge the company processing fees for the oil produced.
Indiva Quality Enables Supply Agreement
At the beginning of February, the company announced a supply agreement with the Ontario Cannabis Retail Corporation, consisting of two strains of pre-rolls for sale through the Ontario Cannabis Store, the province’s government-run cannabis retail chain. The Ontario Cannabis Store only buys cannabis products which have been tested and verified for quality, so becoming one of its first suppliers is a testament to the quality of Indiva’s cannabis flower, which is produced using aeroponics, a soil-less process in which plant roots are suspended in air and misted with nutrients, producing larger yields and a much cleaner product while also being environmentally friendly.
Strong Edibles Offerings
Indiva signed two key agreements in April 2018 enabling it to build a unique edibles offering based on the quality and innovation consumers increasingly desire.
An exclusive license agreement with DeepCell Industries - a Seattle-based technology development company focusing on material science, microfluidics, and cannabinoid molecule discoveries – give Indiva the exclusive right to manufacture and market DeepCell’s entire line of innovative products produced through its patented Crystal Fusion technology. Crystal Fusion mechanically fuses cannabinoids with sugar or salt, producing a “flexible edible” which can be used to season food and beverages as they infuse them THC or CBD. Lucid Lab Group also built and operated extraction facilities for other of DeepCell’s licensees.
A 50/50 joint venture with Nevada-based Bhang Corporation, an award-winning producer of THC and CBD edibles and concentrates, will allow Indiva to manufacture and sell Bhang products in Canada, as well as export Bhang’s products internationally. Bhang’s portfolio of products includes the most awarded line of chocolate bars in the world and a full suite of gummies, oral sprays, isolates, vapes & vape cartridges, and accessories.
All Bhang products and Ruby sugars & salts will be cross-branded “Powered By INDIVA” and position the company to capitalize on the upcoming legalization of derivatives across Canada later this year.
Eye On Emerging European Market
In November, Indiva announced it had signed a non-binding letter of intent with AEssense Europe for the acquisition of 100% of a medical cannabis cultivation and handling license in Denmark – one of only twelve granted. Denmark is poised to become one of Europe’s leading cannabis producers, and will serve as the company’s gateway to the European market, which is predicted to be larger than the US and Canadian markets combined, presenting an enormous opportunity for those with an early presence. Sites have been identified to begin construction of a 1,000 square foot research lab as part of the production facility, with ample room for scaled expansion. Indiva will have the exclusive right to all cannabis-related production, and will leverage the Denmark license for the importation and exportation of EU-GMP cannabis into the Danish and European markets.
Indiva is intent on building a global brand recognized for quality and service, and is already well positioned to excel in the extract-based market in Canada, the US, and Europe, meaning the year ahead should be a lucrative one for the company.
For more information, please visit: https://www.indiva.com/
Please follow the link to read the full article:
https://www.cannabisfn.com/indiva-diversifying-to-excel-in-red-hot-extracts-market/
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