By David George-Cosh, BNNBloomberg
Biome Grow Inc. is tying up a deal to source more than 80,000 kilograms of cannabidiol (CBD) over the next five years, in what the company calls one of the biggest such deals for a cannabis extract.
Biome Grow will obtain the extract from CBD Acres Manufacturer Inc., a cannabis producer that has contracted 4,500 acres across Canada to grow hemp – the plant that the cannabis extract is derived from – under a memorandum of understanding between the two companies.
“This is going to be the new Vitamin C,” Biome Grow chief executive officer Khurram Malik said in a phone interview. “With all these plans announced to insert CBD as a value-added nutrient in your products, we anticipate the CBD market could be bigger than recreational cannabis.”
Financial terms of the deal were not disclosed but Malik said the company is paying CBD Acres “less than half” the market rate of $15,000 per kilogram of CBD. Malik said Biome Grow will obtain 3,000 kilograms of CBD this year, and up to 20,000 kilograms over the next four years.