As a relatively new market, the cannabis industry in Canada is seeing tremendous growth amongst its leading companies. Westleaf Inc. (TSX-V: WL), a cannabis company headquartered in Calgary, Alberta, has firmly established itself as a serious contender in this market. Its focus on high-quality cannabis production, customer focused brands and an innovative retail experience has marked them as one of Canada’s most intriguing companies.
In a move to further advance its position within the cannabis industry, Westleaf has announced that its subsidiary, Westleaf Labs LP, has entered into a definitive agreement with Xabis Inc.
Xabis is a turnkey processing partner, that combines scientific discipline and business expertise. The company is wholly focussed on the plant-to-product portion of the industry. Under this new agreement, Xabis will provide Westleaf Labs with exclusive access to its extraction, processing, manufacturing and product development expertise within the Canadian market.
Industry Leading Expertise
Xabis is a company led by a diverse team of industry experts. From engineers, accountants, lawyers, marketing, branding and operational experts, plus some of the industry’s leading chemical, biological, atmospheric and environmental PhDs, in total, Xabis offers over 150 years of combined experience.
Dale Zink is the CEO of Xabis, and has over 25 years experience in finance, business and IT. He leads a group of PhDs with wide-ranging experience in biotechnology and chemical engineering, which includes extensive experience in the extraction and pharmaceutical industries.
Although this exclusive relationship marks Xabis’s first time working within the Canadian market, the company is well versed in this industry. Xabis has designed, built and operated facilities in nine US states in which cannabis is either medically or recreationally legal, and has developed over 200 cannabis derivative products.
Room for Growth
Operations will take place in Westleaf’s Calgary-based extraction, processing and manufacturing facility, The Plant. The Plant is a 60,000 square foot complex. Its 15,000 sq. ft Phase 1 section will allow for research and development, processing, extraction, manufacturing and order fulfilment and have the capacity to process 65,000 kgs of cannabis per year. Phase 1 is currently under construction, and due for completion this month.
“In terms of scalability, The Plant currently occupies a quarter of its space, and retains an additional 45,000 square feet which is available for expansion”
Furthermore, Health Canada prepares for amendments to be made to cannabis legislation, currently predicted to be finalised later this year, and these amendments will legalise the production and sale of edible cannabis products. This will give The Plant the freedom to produce a new line of derivative and consumable products, including oils, gels, capsules, vape pens, topicals and edibles. As the value of cannabis is much higher once it has been processed into other products, this will allow Westleaf to capitalize on this lucrative business opportunity. It will also cater to the huge, predicted shift in consumer demand from flower to alternative cannabis products, once they have been legalised.
Preparations to go Global
Located in Calgary, The Plant is strategically located in the largest retail market in the prairies and also has easy access to national transportation systems, which allows for sales to other markets across Canada.
As a forward-looking company, Westleaf and Xabis are intentionally building The Plant to meet EU GMP specifications, to ensure compliance for international export capabilities, and allow the option to sell globally as new cannabis markets open up around the world.
Under the Westleaf brand portfolio, The Plant is designed to produce a diverse collection of cannabis derivative products. In addition to this, Westleaf plans to offer white labelling services, in which they will produce completed products for third parties to sell as their own. They will also offer contract manufacturing services for distillation and raw extract.
The agreement between Westleaf and Xabis could potentially accelerate Westleaf’s position in the cannabis industry. Securing this exclusive relationship with Xabis in the Canadian market will give Westleaf an edge and an early advantage in the upcoming changes in legislation. As a dynamic and ambitious company, Westleaf looks set to continue to impress both customers and shareholders as a leader in this new phase of the cannabis market. For more information about Westleaf and its operations visit: https://www.westleaf.com/wp-content/uploads/2019.06-Westleaf_Inc.-Investor_Presentation.pdf
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