As the cannabis industry continues to ramp up, the next most anticipated product in the sector are refined, CBD oils. While Canadian legislation does not consider these products legal for consumption as of yet, industry experts expect the administration to will change their view in 2019, and many companies are moving in anticipation of such a ruling.
Supreme Cannabis Co (TSXV: FIRE) announced a partnership with MediPharm Labs (TSXV: LABS), in which the later would assist in the extraction and production aspects for the former’s cannabis oil products.
MediPharm owns its own processing license and is well known as a leader in the industry for its exclusive focus on cannabis extraction and production of CBD oils. According to the agreement, Supreme Cannabis subsidiary 7ACRES will supply a minimum of 1,000 kg high-quality cannabis trim as input annually, in which MediPharm will refine into 200,000 40ml units of high-terpene cannabis oil for consumer use. All oil sold will be done under the Supreme Cannabis brand, with MediPharm receiving a processing fee based on the quantity of oil produced.
“We expected market segmentation as the Canadian cannabis industry evolved and the emergence of dedicated experts focused on downstream activities. Partnering with product experts, such as MediPharm, allows Supreme Cannabis to launch oil products quickly,” said CEO Navdeep Dhaliwal. “We are excited to be working with MediPharm and look forward to Canadian adult-use consumers being able to experience High-End Cannabis oil products derived from what we believe is the best flower being produced at scale.”
Yesterday on November 12th, MediPharm announced that it had secured its own sales license from Health Canada, which would help position itself as a lead supplier in the CBD-oil supply chain for established industry partners (for more information, see our earlier article here.) This newfound arrangement with Supreme Cannabis seems to be the first among many new partnerships likely to come in the future.
As for Supreme Cannabis, the agreement with MediPharm wasn’t the only piece of news released today. The company also announced that they were acquiring Bayfield Strategy Inc., a major communications and stakeholder relations firm, according to Newswire. The plethora of activity on the part of Supreme Cannabis is seen by investors as a good sign as major players in the industry compete to consolidate and grow.
Supreme Cannabis Company Profile
The Supreme Cannabis Company, Inc. is a Canadian publicly traded company committed to providing premium brands and products that proudly reflect its consumers, people and uniquely innovative culture. The Company’s portfolio includes its wholly-owned subsidiary and flagship brand 7ACRES. –Supreme Cannabis
MediPharm Labs Company Profile
MediPharm Labs, through its subsidiary, is a pioneer in the cannabis industry and has the distinction of being the first company in Canada to become a licensed producer for cannabis oil production under the Access to Cannabis for Medical Purposes Regulations (ACMPR) without first receiving a cannabis cultivation licence.
This expert focus on cannabis concentrates from our cGMP (current Good Manufacturing Practices) and ISO standard clean rooms and critical environments laboratory, allows MediPharm Labs to work with its established, Health Canada-approved cultivation partners to produce pharmaceutical-grade cannabis oil with a competitive advantage.
MediPharm Labs is research-driven and focused on downstream secondary extraction methodology, distillation, and cannabinoid isolation and purification. MediPharm Labs, through its subsidiary, provides B2B contract processing of cannabis to Canadian authorized licensed producers and appropriate international growers, supplying integrity-assured cannabis oil to qualified companies for sale under their own brand. – MediPharm Labs