Cannabis in Canada has a long and storied history, going back to 1923 when the plant was added to the Confidential Restricted List as a prohibited drug. Fast-forward to 2001 and regulators loosened laws to allow medical use to treat certain conditions under the MMPR (Marijuana for Medical Purposes Regulations). Then, in October 2017, history was made with Canada becoming the first G7 country to legalize recreational marijuana nationwide, creating a vibrant industry and multi-billion-dollar companies.
According to Statistics Canada, about 4.9 million Canadians aged 15 to 64 spent an estimated C$5.7 billion on cannabis for medical and non-medical purposes in 2017, spending that the government hopes to turn into revenue with the end of prohibition. Canadian bank CIBC estimates the legal Canadian market will grow to C$6.5 billion by 2020.
Long before recreational cannabis was legalized in the country, THC BioMed (CSE: THC) (OTCQX: THCBF) had planted its roots as a cultivator and researcher of medical marijuana in Kelowna, British Columbia. Through an Exemption 56, MMPR license, ACMPR (Access to Cannabis for Medical Purposes Regulations) license and now a Cannabis Act license, the company is an expert in the full gamut of production and regulations, offering its products and services throughout Canada and other parts of the world.
The company’s wholly-owned subsidiary, Clone Shipper Ltd., owns all rights to an eponymous product used to transport plants. Patent-pending technology of Clone Shipper covers an invention of an illuminated shipping container for live cannabis plants.
Making the moves to scale, THC has invested over $1.1 million in acquiring properties adjacent to its flagship facility. They needed it because in November THC earned a Cannabis Actand Cannabis Regulations license that allows it to produce and sell cannabis products on a large scale under the new Canadian laws.
To that end, THC now has 11 strata lots licensed for production, three more that are being submitted to Health Canada for review and another three under construction. All told, the company has 20 strata lots under its ownership, lease or contract to purchase in Kelowna.
The company, one of only 30 inaugural members of OTC Markets Group’s newly coined OTCQX Cannabis Index, recently entered into an agreement with the British Columbia Liquor Distribution Branch (BCLDB), the provincial wholesale distributor of non-medical cannabis, to supply several of its cannabis products exclusively throughout B.C.. Per the agreement, THC will be supplying 3.5-gram and 7-gram formats of select flower strains, including its THC Sativa Landrace, THC Indica Landrace, THC Hybrid Landrace, THC CBD Indica Landrace, Atomical Haze, West Coast Dream, Original Cheese and Jacky White.
West Coast Dream and Original Cheese are hybrid flowers containing an even mix of Indica and Sativa, differentiated by THC level. Jacky White is a Sativa-dominant hybrid.
The exclusive agreement strengthens the relationship between THC BioMed and BCLDB that kicked-off with the company delivering its first shipment of its Landrace line for the recreational market in October. Only weeks later, three of the strains and pre-rolls were listed on the BCLDB’s online store as best sellers, with the THC Hybrid flower and THC Hybrid pre-rolls taking the number one spots for their categories on launch day.
By the end of October, THC had made three shipments in order to restock sold-out products. Come the start of December, five shipments to BCLDB were sent, which now included THC CBD and Atomical Haze strains.
Also in December, the company expanded its sales channels into Saskatchewan, sending its first shipment of dried and pre-rolled cannabis to an undisclosed retailer in Saskatoon.
THC Makes Cannabis History
On the topic of pre-rolls, THC made history this month by becoming the first Canadian Licensed Producer to automate its pre-rolls containing 100% cannabis. With this accomplishment, the cannabis industry took another stride forward, as the word “joint” could one day be nearly obsolete in its traditional sense.
THC intends to soon begin shipment throughout its distribution network of its automated pre-rolls in four different strains of cannabis containing THC, and one strain of cannabis containing mostly CBD.
The momentum being gained translated to improving sales figures even ahead of the recent developments. During the quarter ended January 31, 2019, THC reported unaudited revenue of $474,041, up 55.2% from $305,448 in the year prior period. For the six months ended January 31, 2019, revenue totaled $753,181, a gain of 29.5% from $581,685 in the same period a year earlier.
THC Kiss Promise
As THC widens its flower and pre-roll distribution, the company is preparing to launch its first beverage, called THC Kiss. THC holds this developmental product in high regard, claiming the one-of-a-kind organic cannabis drink will deliver where all other similar products have failed. In part, its uniqueness comes from an extraction method that enhances cannabinoids that have never by utilized before.
Through its extensive research, THC believes it has the solution to overcome the obstacle of cannabis beverages causing fatigue and drowsiness. The company is confident that THC Kiss will be the first cannabis beverage to provide a mental and physical high for a short period of time following consumption. For now, though, the drink is under wraps while the Canadian government hammers out the details to legalize beverages and edibles containing cannabis.
Companies like Corona beer maker Constellation Brands (NYSE: STZ) have bet big on the future of cannabis drinks, investing $5 billion for a 38% stake in Canadian marijuana juggernaut Canopy Growth (NYSE: CGC) (TSX: CGC) to get into the space. Not to be left out, Molson Coors (NYSE: TAP) (TSX: TPX.B) teamed up with Quebec’s Hexo Corp. (NYSE American: HEXO) (TSX: HEXO) to launch a line of cannabis beverages called Truss, as the evolution of the green rush is aligning for cannabis beverages to become big business.
Ahead of any beverage legalization, THC CEO John Miller says he is satisfied with the progress his company is making. So pleased in fact that he recently bought another 500,000 shares of the company, boosting his position to about 23.3 million shares, or about 17.3% of THC’s outstanding shares.
To Learn more about THC BioMed (CSE: THC) (OTCQX: THCBF) visit the Company’s Website: https://thcbiomed.com
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