Cannabis companies are continuing to expand across Canada as the industry consolidates over the next 12-24 months. Today, VIVO Cannabis Inc (TSX-V) announced that their subsidiary, ABcann Medicinals Inc, has received regulatory approval from Health Canada to begin expanding it’s Vanluven Road cultivation facility, doubling VIVO’s overall cannabis production in the province.
“Through our internal expansion projects (including indoor facilities, seasonal greenhouses and outdoor growing) and certified third-party partners, we are well-positioned to increase our offering of premium products in Canada’s medical and adult-use markets, including launching new formats such as edibles, concentrates and precisely-dosed medical products when they are permitted by regulations,” said VIVO’s CEO Barry Fishman. “The GMP certification of our Vanluven expansion, expected later this year, will enable us to service the growing international medical cannabis market. We are excited to build on our success by introducing new high-margin, value-added products which leverage our increased production capabilities and tap into the user insights gained from our vast Harvest Medicine Clinic patient network.”
The proposed expansion would be compliant to GMP standards, as well as adding other auxiliary enhancements such as a CO2 extraction suite for the production of CBD/THC concentrates. Currently, the production capacity of the facility is at 5,000 kilograms, which is expected to increase to around 11,000 kilograms later this year. Additionally, VIVO will be receiving several thousand extra kilograms from third-party growers that meet VIVO’s quality standards.
The company also announced that it would begin an observational medical trial to study how medical cannabis helps in treating chronic pain. This study will be based in Melbourne, Australia, and is expected to provide much needed long-term data in regards to how efficient medical cannabis is when it comes to treating chronic symptoms. The study will also work alongside the Australian Medical Cannabis Service (AMCS) to both administer the study as well as grow the company’s presence in the country.
“Driven by unmet clinical needs, medical cannabis products and treatment plans continue to gain momentum in Australia. The Study will help to inform VIVO’s product development through data gathered from both patients and physicians,” added Fishman. “This access to primary data is expected to continue to ensure our products address the specific health and wellness needs of our clients and customers, something that we believe provides a distinct advantage. We remain committed to ensuring Australians have access to our medical cannabis, and to our efforts to change the way people view cannabis.”
In response to the news, shares of VIVO jumped around 13 percent in today’s trading session, increasing by C$0.13 during the last couple hours in the day to C$1.12 per share. Overall, the company is worth around $300 million, making it still a small-time player in the cannabis industry. The company also owns a variety of premium cannabis brands, having recently acquired Canna Farms based out of British Columbia.
VIVO Cannabis/ABcann Global Company Profile
ABcann Global Corp is a Canada-based company. It is involved in the manufacturing and distribution of medical cannabis. The company offers its services to the Europe and Australia region. – Warrior Trading News
