CannTrust Holdings Inc.'s chief executive Peter Aceto said the Vaughan, Ont.-based licensed producer has a short list of biosynthesis companies that it is in active conversations with, which could result in either a partnership or acquisition.
Synthetic cannabinoid production has the potential to disrupt the cannabis industry supply chain, he added in a recent note. Cronos' chief executive Michael Gorenstein said during a recent conference call that this partnership is key to its strategy of focusing on developing branded products and intellectual property, rather than the capital-intensive process of cultivation and production. He added that Cronos and Ginkgo will focus on synthetic production of THC, the compound which produces a high, and CBD, the non-impairing compound believed to have anti-inflammatory properties.
It's similar to brewing beer, where water, yeast and malted grain are combined and fermented to produce an alcoholic beverage. However, the yeast is instead genetically engineered to produce the necessary enzymes to yield cannabinoids instead.
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