Why business is booming for cannabis extraction companies, despite the supply shortages

  • 📰 nationalpost
  • ⏱ Reading Time:
  • 62 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 28%
  • Publisher: 80%

Business News News

Business Business Latest News,Business Business Headlines

Although licensed producers are getting into extraction, observers predict it won’t be enough to meet future demand for cannabis in oil-form

In the most recent round of cannabis earnings, a little-known company called MediPharm Labs Corp. posted revenue of $10.2 million for the quarter ending Dec. 31, 2018, a figure that placed it comfortably amongst the Top 10 for Canadian cannabis companies.

As such, they predict, companies focusing solely on cannabis extraction will start comprising an increasingly important subsection of the overall industry. Indeed, MediPharm has over 20 supply, purchase or sales agreements with a number of licensed producers — they function as the middle-man of sorts in the cannabis supply chain, purchasing dried cannabis, extracting the oil-like substance containing THC or CBD from the plant, and selling it back to the same producers, or to other producers that have requested cannabis extract.

Unlike extractors focused solely on cannabis however, Neptune has a fallback — in the event demand for cannabis derivatives do not match up to forecasts and the bullish sentiment towards cannabis extractors subsides, the company is in the wellness business and owns a patent for the wildly successful Omega-3 Krill Oil supplement.

“First of all, we have five different kinds of extraction methods at our facility. Most people are only using CO2 as a solvent for extraction. Second of all, we’re extracting at a 90 per cent rate, which means that 90 per cent of the component we want in cannabis, THC or CBD, is being extracted, so we are getting higher yields,” Knight explained.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

MediPharmLabs Anyone interested in investing in this can follow me for news.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 10. in BUSİNESS

Business Business Latest News, Business Business Headlines