As the legalization of cannabis edibles and infused products in Canada approaches, extracting companies are preparing to meet the projected increase in demand for these services.

During a panel at the MJBizConINT’L event in Toronto last week, two extraction executives discussed the outlook for this market as the attention in the stock market shifts away from producing companies.


Paul Pedersen, co-founder and CEO of NextLeaf Solutions (CSE:OILS,OTCQB:OILFF), and Tyler Robson, CEO and director of Valens Groworks (TSXV:VGW,OTCQX:VGWCF), agreed the interest for the extraction play is only set to rise with the introduction of novelty products in Canada.

 

Cannabis - Will The Fortune 500 Join The Party?

 
Our Exclusive FREE Report Contains Information You NEED To Know About Cannabis Stock Investing!
 

Pedersen told the room as the rush for new cannabis products increases, he isn’t sure if every company promising product launches will be prepared for the Canadian market opening.

“There’s going to be very, very few licensed manufacturers of beverage and edibles that are going to be ready,” Pedersen said.

These new wave companies offer extraction services to secure the cannabis oils used by producers to infuse marijuana items such as edible cookies or cartridges used for vape pens.

Canada is set to legalize edible products starting on October 17. However, the actual sales of these items will not officially begin until mid-December, according to Health Canada, the federal agency tasked with regulating the marijuana industry.

Pedersen said investment has only really focused on the growing aspect of the whole cannabis industry.

“As we know, this industry has seen a lot of capital flow into growing plants and building cultivation capacity, but what we haven’t seen in Canada (is) the same level of investment, not even close on the manufacturing side.

“I think there’s a lot of billion dollar companies that are unprepared for what is coming next,” Pedersen told the audience.

To reinforce how far along the cannabis extraction play has come along, Pedersen shared an anecdote of a meeting with a leading licensed producer executive who dismissed the notion of the extraction market as well as companies solely focused on this aspect of the market.

 

Cannabis - Will The Fortune 500 Join The Party?

 
Our Exclusive FREE Report Contains Information You NEED To Know About Cannabis Stock Investing!
 

Trina Fraser, partner at law firm Brazeau Seller Law and a speaker at the panel, said she was glad Health Canada did not outright ban some edible items such as cookies due to their inherent appeal to kids.

However, the expert lawyer added that companies will have to navigate the regulatory space carefully so these new products don’t attract minors as part of the promotion and packaging.

Robson said he is bullish on the upside for vape pens. In his view, these products will dominate the Canadian cannabis 2.0 market, a popular term for the introduction of edibles and infused items.

The extraction executive said, while edibles may be appealing, sales numbers in mature cannabis markets in the US paint a different picture for the popularity of these products.

Fraser told the audience she has heard a variety of passionate agreements for vape pens and cannabis-infused beverages as the de-facto leader of the new Canadian market. Fraser added she is excited to see which one proves to be right.

Cannabis-infused drinks have gained a hefty investment interest from various marijuana corporations that are planning to develop products that could offer a replacement to alcoholic beverages.

“I think the extraction market was something that a lot of people who invested in the cannabis industry were not focused on,” Michael Cammarata, president and CEO of Neptune Wellness Solutions (NASDAQ:NEPT,TSX:NEPT), previously told INN when discussing metrics for the extraction company stock market.

In a previous interview with the Investing News Network (INN), Greg Taylor, chief investment officer with Purpose Investments, said he expects an increased stock market focus for the entire extraction play as edibles come into the Canadian space.

Don’t forget to look for the rest of our coverage of MJBizConINT’L, with exclusive interviews and more insights from the show. You can also follow us @INN_Cannabis for real-time news updates!

Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: NextLeaf Solutions and Valens GroWorks are clients of the Investing News Network. This article is not paid-for content.

The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.

 

Cannabis - Will The Fortune 500 Join The Party?

 
Our Exclusive FREE Report Contains Information You NEED To Know About Cannabis Stock Investing!
 
  • Company has received UK Continuing Professional Development (“CPD”) accreditation for its global education platform, Khiron Academy
  • UK medical professionals may now earn CPD credits through Khiron’s medical cannabis education program
  • The Company has entered into a strategic partnership with Cellen Therapeutics, a leader in digital healthcare in the UK, to increase patient access via medical cannabis education
  • As a leading international medical cannabis educator, nearly 1,000 medical professionals in Latin America and the United Kingdom have registered for, or completed, Khiron Academy training

 Khiron Life Sciences Corp. (“Khiron” or the “Company”) (TSXV: KHRN) (OTCQX: KHRNF) ( Frankfurt : A2JMZC), a vertically integrated cannabis leader with core operations in Latin America and Europe is pleased to announce it has received UK Continuing Professional Development (“CPD”) accreditation for Khiron Academy, the Company’s global medical cannabis education platform.

Additionally, following its accreditation, the Company has entered into a strategic partnership with Cellen Therapeutics, a leader in digital healthcare in the UK and fellow founding member of Project Twenty21, to increase patient access through medical cannabis education initially. Khiron Academy will be made available to prescribers in the UK that have registered with Cellen’s MedCanHub, an emerging education portal. Cellen is market leader, widely recognized for also launching the UK’s first digital pain clinic, Leva.

Keep reading... Show less

TRACE’s plant-based and alkaline wellness products to expand into key markets of Japan, China and the Philippines

Emerging leader in innovative health and wellness beverages and consumer products, BevCanna Enterprises Inc . ( CSE:BEV , Q:BVNNF , FSE:7BC ) (“ BevCanna ” or the “ Company ”) announces today its anticipated expansion into the Asia Pacific region, through its wholly-owned subsidiary Naturo Group. After completing a comprehensive market, distribution and partner assessment, the Company intends to initially launch its portfolio of TRACE health and wellness products in the key markets of Japan, China, and the Philippines, through multi-channel distribution outlets including e-commerce, retail, and wholesale.

Keep reading... Show less

Trulieve acquires dispensary permits from Solevo Wellness West Virginia LLC for $650,000

Trulieve Cannabis Corp . (CSE: TRUL) (OTCQX: TCNNF), a leading and top-performing cannabis company in the United States and the largest cannabis company in Florida announced today that it acquired Solevo Wellness West Virginia LLC (“Solevo”) and its three West Virginia dispensary permits for $650,000 . Solevo was awarded two permits in Morgantown and one in Parkersburg in January 2021 as part of the West Virginia application process.

Keep reading... Show less

Better Plant Sciences Inc. (CSE: PLNT) (OTCQB: VEGGF) (FSE: YG3) (“Better Plant”) or (the “Company”) a wellness company that develops and sells sustainable, plant-based products, is pleased to announce that it’s Jusu Home and Body line is now available for purchase on Faire Wholesale Marketplace (“Faire” or “www.faire.com”), an online wholesale marketplace valued at US $2.5 billion. Jusu Home and Body products are currently featured in their “New Arrivals” section.

Cannot view this image? Visit: https://orders.newsfilecorp.com/files/6377/80230_8c77c54544bf884c_001.jpg

Keep reading... Show less

 Aion Therapeutic Inc. (CSE: AION) (” Aion Therapeutic ” or the ” Company “) today announced that it has retained KCSA Strategic Communications (” KCSA “), a leading New York City -based communications firm.

Keep reading... Show less