World Class Extractions (CSE:PUMP) announces the following:

To Our World-Class Shareholders, Employees, Partners, and Stakeholders:


2020 marks the beginning of an exciting new decade and coming of age for cannabis and hemp oil production, opening the industry to an entirely new selection of legal product offerings. We have seen consumer sales continue to shift from smoking cannabis flower towards product offerings of oil-based cannabis products. We believe extraction represents a large – if not the largest – growth sector in the industry. Extraction is the fundamental first step to produce these value-added cannabis/hemp-derivative products – and World-Class is poised to capitalize on this shifting consumer preference.

World-Class is driven by innovation. For over half a decade, our team has worked tirelessly to build a solid technological foundation based on research and development. Today, World-Class is working to deploy and operate the extraction equipment and processes that it has developed over the years in order to create revenue-generating, purpose-built cannabis and hemp extraction and processing centres in Canada and the United States.

The merger of World-Class Extractions Inc. and Quadron Cannatech Corporation in 2019 was a significant milestone, as the combination of capital, experience, and technology has laid the foundation for our plans in 2020 and beyond. Thank you all for your support – I am pleased to provide insights into our business strategies and initiatives that will propel us through 2020.

From developing leading-edge extraction equipment and technologies, to deploying purpose-built extraction and processing centres, World-Class is uniquely positioned to meet the demands of the rapidly evolving cannabis and hemp industries.

Merger of World-Class and Quadron – A Powerful Team

World-Class is innovating, investing and influencing the future of the cannabis and hemp extraction and processing industry.

Quadron began R&D on advanced proprietary cannabis and hemp extraction and processing systems in 2014. Since then, it has developed proprietary industrial-grade manufacturing equipment and innovative processes to deliver consistent and high-quality cannabis extracts. In 2019, Quadron and World-Class merged, combining Quadron’s extraction expertise and operational experience with World-Class’ strong financial background. Together, World-Class has the expertise to deliver its industry-leading extraction and processing technology and services in Canada, the United States, and internationally.

Upon merging, we have been working diligently on integrating the two companies. Our senior leadership team has been optimizing corporate needs, integrating both companies and subsidiaries, and harmonizing our technologies and advancements in order to deliver best-in-class extraction and processing centres. This includes better alignment of our key talent along with recruiting new talent to support our growing company.

World-Class has a scalable business model. We are constantly evaluating opportunities to further penetrate emerging high-value markets as a key driver for our long-term growth strategy and revenue generation.

World-Class Initiatives – Moving Forward in 2020

The legal global cannabis market size is expected to reach USD $66.3B by the end of 2025[1], and the legal cannabidiol (CBD) market size predicted to be worth USD $9.69B by 2025[2]

Cannabis extraction represents a huge growth opportunity. From a supply-chain stand-point, concentrates are considerably more shelf-stable, easier to test analytically and more convenient to transport as compared to cannabis flower. For consumers, a large diversity of final products – from tinctures and capsules, to vape pens, edibles, creams, bath bombs, and beverages, to name a few – can be created using cannabis and hemp extracts. Our key performance indicators continue to point to the growth of cannabis and hemp-derived oils.

With market size predictions validating our forecasts over the last five years, our key performance indicators continue to point to the growth of cannabis and hemp-derived oils. As cannabis and hemp continue to commoditize, price will matter. Our team has always taken into consideration the fact that there will be price compression in the marketplace for cannabis and hemp biomass and their extracts. World-Class believes that the quality and efficiency of cannabinoid extraction will be paramount.

In the U.S., we are seeing hemp flower prices dropping to unprecedented lows despite the incredible valued of CBD concentrates. The lack of processing capacity in the U.S. has led to the market being saturated with flower. This has created a glut of hemp biomass in the U.S., which will deteriorate rapidly if not processed or extracted. The same problem is happening in Canada where processing bottlenecks, compounded by insufficient development of retail capacity have led to huge build-ups of cannabis and hemp inventory that companies must store and risk deterioration. The Health Canada chart reproduced below illustrates how serious this issue has become in Canada.

Our team has taken into consideration that there will be price compression in the marketplace for cannabis and hemp biomass and their extracts. Without extraction, cultivators are at risk of watching their inventory degrade and spoil. To unlock the value of this biomass and create shelf-stable products, extraction and processing is necessary. We look forward to being part of the solution to this serious industry problem.

World-Class has advanced equipment and extraction technology and is positioned to solve these very real issues facing the cannabis and hemp industry. After extensive research and testing, our goal is to deploy extraction and processing centres to provide relief to licensees who are faced with backlogs of hemp or cannabis or unable to generate strong returns from supplying raw flower.

world class figure 1

Figure 1: Cannabis Demand and Supply Chart from the Government of Canada website, accessed January 7, 2020 at https://www.canada.ca/en/health-canada/services/drugs-medication/cannabis/licensed-producers/market-data/supply-demand.html

World-Class is implementing the following initiatives in 2020 to achieve diversified revenue:

Deployment and Operation of World-Class Extraction and Processing Centres

World-Class designs, builds, and operates full-scale extraction and processing centres on a revenue-sharing basis. Our state-of-the-art facilities and equipment are designed for large scale processing of cannabis and hemp, including storage, preparation, extraction, refinement, distillation, formulation, and packaging.

World-Class extraction and processing centres will develop, produce, and distribute a wide variety of cannabis and hemp concentrates as well as value-added products. Strategic relationships with industry participants are expected to provide World-Class with ongoing revenue streams and reduce investment risk, while allowing us to leverage existing infrastructure and core commercialization that competitors lack.

World-Class focuses on integrating and optimizing equipment and technologies to maximize production throughput and cost reductions for competitive performance. This offers significant competitive advantages, driving profitably for our clients and partners regardless of varying market conditions and price fluctuations.

To maximize profitability in 2020 and beyond, World-Class will continue to provide fee-based services to industry participants including: biomass storage; oil production (biomass preparation and extraction technologies); crude oil processing and refinement (premium concentrates and isolates, including THC, CBD and full-spectrum oils); and end-product manufacturing (formulation, hardware and packaging).

To date, we have announced the deployment of three cannabis processing centres – two in Canada and one in California:

  • Canntab Therapeutics Limited, Markham, Ontario. World-Class entered into a binding letter of intent with Canntab to set-up, manage and operate a cannabis and hemp extraction and processing facility, at Canntab’s licensed facility in Markham, Ontario. Deployment includes two BOSS CO2 Extraction Systems and the peripheral equipment required. Each BOSS CO2 Extraction System can process up to 200 pounds of biomass per day, which can produce high-potency cannabis and hemp concentrates (yield will vary depending on concentration levels of the input biomass). Canntab is a late-stage Standard Processing applicant under the Cannabis Act and deployment is subject to Canntab’s receipt of a Standard Processing License from Health Canada.
  • FV Pharma Inc., Cobourg, Ontario. In September World-Class announced an arrangement whereby World-Class, under the FV Pharma umbrella, would set-up and assist with the operations of a large capacity cannabis and hemp extraction and processing facility at FV Pharma’s licensed facility in Cobourg, Ontario. World Class expected to be able to install the necessary equipment to commence operations at the Cobourg facility prior to January 2020. During the latter part of 2019, FSD Pharma Inc., the parent company of FV Pharma Inc. was pursuing a listing on NASDAQ and as a result, World Class experienced unanticipated delays with the deployment of this extraction and processing facility. Since FSD Pharma Inc.’s listing on NASDAQ in January 2020, World Class continues to wait for FSD Pharma Inc. to decide on the direction it will be taking with its Cobourg facility. World Class is hopeful that it will be able to complete the deployment of this extraction and processing facility in the future and will update shareholders on developments accordingly.
  • Nutralife Holdings LLC., Imperial County, California. World-Class entered into a binding letter agreement with Nutralife Holdings, LLC and Nutralife Extraction Limited Partnership to establish a joint venture to develop, manage and operate a hemp extraction and processing facility in Imperial County, California. Together, the companies expect to extract hemp oil in compliance with the U.S. Agriculture Improvement Act of 2018 (also known as the Farm Bill). Deployment of World-Class equipment to the Nutralife facility is expected to begin in Summer 2020. Under the terms of the Nutralife agreement, the parties will share the economic benefits through a profit share structure reflective of the respective interest of each party (Nutralife Holdings, 60% and World-Class, 40%).

U.S. Expansion. The expansion of World-Class’ operations to the U.S. market represents a significant milestone. California has well-established supply chains and less regulation on extracted product than Canada. Our joint venture with Nutralife, a leading natural wellness company, validates our equipment, technology and business model in a large and competitive market such as California.

European Expansion. We are currently in negotiations for the expansion of our extraction and processing centres (equipment and technologies) to the European market. The expansion will include extraction and processing of hemp and cannabis (as jurisdictions allow) and branded product manufacturing.

Brand & Product Development

World-Class extraction and processing centres will offer toll processing services to develop, produce, and distribute a wide variety of cannabis and hemp concentrates, as well as white-label services to create value-added formulated products.

These services create diversified revenue streams, allowing World-Class to build a strong, well-balanced product and service portfolio, produced, and distributed through license agreements (such as royalty arrangements).

  • Ingestibles – Drops, Capsules and Pills. Market entry targeted for mid-2020*
  • Vaporization – Vape Pen, Cartridges, Batteries and Related Accessories. Hardware sales since 2017. Filled vape pen market entry mid-2020*
  • Topicals – Creams, Serums and Balms. Market entry targeted for late-2020*
  • Edibles – Cookies, Candies and Chocolates. Market entry targeted for early-mid-2021*

*Note: Market entry targets are subject to market conditions, regulation, and regulatory approval.

World-Class Technology – Patent Application

World-Class has filed, and will continue to file, patent applications for its proprietary systems and methods for producing cannabis extracts in every major industrialized country of economic significance. We believe in the novelty and uniqueness of our systems & technology to process incredibly large volumes of cannabis and hemp plant material and to produce extracts that have greater concentrations of target cannabinoids and possess minimal contaminants.

Alkaline Spring Investment

Alkaline Springs intends to launch a brand of cannabis and hemp-infused beverages on a white label basis in markets outside of Canada. The World-Class investment into Alkaline Springs is a strategic investment which includes a right of first refusal to supply any cannabis or hemp extracts required in Alkaline Spring’s business and the exclusive right to license future formulations of Alkaline Springs.

World-Class R&D – Continuously Optimizing Extraction & Processing Technologies

It’s not just the equipment
but the integration of processes that is most valuable

Our ongoing R&D has produced the strongest manufacturing processes in the industry by upgrading our extraction capacity and increasing the efficiency of our extraction and processing technologies – a cornerstone to our success and ongoing demonstration that World-Class is in the solutions business. We are also creating alliances with global companies in the manufacturing of our equipment – the BOSS was just the beginning.

By anticipating and interpreting the needs and aspirations of the industry, World-Class continues to develop disruptive solutions for a rapidly growing industry.

Our Proprietary Technology

  • The BOSS CO2 Extraction System. Incredibly efficient – 5X smaller footprint and ⅕ the energy consumption than other systems – installation and training in hours, not weeks.
    66 pounds of biomass processing per cycle (200 pounds/day if running 3-cycles). Clean-in-Place (CIP) system at the touch of a button (vs machine disassembly for cleaning in others). One employee can run three machines simultaneously. Available for commercial sales.
  • The BEAST Ethanol Extraction System. High extraction efficiencies and low ethanol use. Industrial-scale, nitrogen biomass cooling with Energy Recovery Exchange (ERE). Less ethanol recovery required (a very expensive portion of ethanol extraction systems) with advanced filtration stacks. CIP system meets stringent GPP (Good Production Practices) and GMP (Good Manufacturing Practice) requirements. Exclusive to World-Class extraction and processing centres.

In Development

  • The BIG BOSS Co-Solvent Extraction System. CO2 and ethanol; 3 x 150 L capacity. Under development.
  • The BIG BEAST Ethanol Extraction System. 20,000 kg estimated daily processing capacity (over 5 million kg per year). Late-stage development. Deployment to Nutralife facility in Imperial County, California expected in mid-late 2020.

Our Future

2019 has proved to be a monumental year – it marked the year of the merger of World-Class and Quadron, and World-Class’ entry into the cannabis and hemp extraction and processing business. This past year has shown us that we are at the very beginning of a rapidly expanding – and what we believe is the largest – segment of the cannabis and hemp industry, as access to oil-based products around the world continues to grow.

We are targeting a multi-billion dollar high-growth market characterized by considerable barriers to entry and increased outsourcing need. This represents a long-term opportunity wherein World-Class expects to generate rich margins and significant returns on capital, ultimately unlocking shareholder value.

We are motivated to continuously develop cutting-edge solutions for a rapidly growing industry by anticipating and interpreting its needs. I am extremely optimistic about the growth and profitability of our opportunities.

Thank you again to our shareholders, partners, stakeholders, and supporters for your continued commitment to our collective success. To our highly qualified, motivated, and committed staff, each of whom is critical to our long-term success, I extend my sincerest appreciation.

After years of dedication and hard work, World-Class is strategically positioned to capitalize on the opportunities that lie ahead. Our team is hyper-focused and ready to make 2020 a milestone year for World-Class and its shareholders.

This is our company and together, we will succeed. We’re definitely PUMP’d!

Rosy Mondin

CEO & Director
World-Class Extractions Inc.

#GREENTOGOLD

Investor Contact
Christina Rao & Daniel Mogil
World-Class Investor Relations
1-604-723-7480
ir@worldclassextractions.com

Cautionary Note Regarding Forward-Looking Statements

Except for the statements of historical fact contained herein, the information presented in this release constitutes “forward-looking statements” as such term is used in applicable United States and Canadian laws. These statements involve known and unknown risks, assumptions, uncertainties and other factors that may cause actual results or events to differ materially. These statements relate to analyses and other information that are based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Any other statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as “expects” or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans, “estimates” or “intends”, or stating that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved) are not statements of historical fact and should be viewed as “forward-looking statements”. Forward-looking statements in this release include statements regarding: the completion and capacity of certain cannabis and hemp processing centres in Ontario and California; the development, production and distribution of a wide variety of cannabis and hemp concentrates, as well as value-added products by the Company; and the Company’s expansion into Europe. The Company believes there is a reasonable basis for the expectations reflected in the forward-looking statements, however these expectations may not prove to be correct. Such statements are only projections and predictions, are based on assumptions known to management at this time, and are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the forward-looking statements, certain of which may be beyond the control of the Company, including that the Company may not deploy the cannabis and hemp oil extraction centres in the expected timeframe, or at all; that legislative changes may have an adverse effect on the Company’s business and product development; that the Company may not be able to obtain adequate financing to pursue its business plan; general business, economic, competitive, political and social uncertainties; failure to obtain any necessary approvals in connection with the proposed extraction centres, and other factors beyond the Company’s control. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements contained in this release and in any document referred to in this release. The Company assumes no obligation to update or supplement any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law. This release shall not constitute an offer to sell or the solicitation of an offer to buy securities.

Neither the Canadian Securities Exchange nor its Market Regulator (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.

[1] According to a new report by Grand View Research, Inc.: https://www.grandviewresearch.com/press-release/global-legal-marijuana-market

[2] According to a December 2019 report by Grand View Research, Inc.: https://www.grandviewresearch.com/press-release/global-cannabidiol-cbd-market

Source

Progressive Planet Solutions Inc. (TSXV: PLAN) (“PLAN” or “Progressive Planet”), announces that, further to its news releases dated December 22, 2020 and January 7, 2021 the Company has closed its non-brokered private placement financing comprising of 7,500,000 units, at $0.10 per unit, for total gross proceeds of $750,000 .

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 Revive Therapeutics Ltd. (” Revive ” or the ” Company “) (CSE: RVV) ( USA : RVVTF), a specialty life sciences company focused on the research and development of therapeutics for medical needs and rare disorders, is pleased to announce that is has entered into an agreement with Canaccord Genuity Corp. and Leede Jones Gable Inc. as the co-lead underwriters (collectively, the ” Underwriters “), pursuant to which the Underwriters have agreed to purchase, on a bought-deal basis, 20,000,000 units (the ” Equity Units “) at a price of $0.50 per Equity Unit for gross proceeds to the Company of $10,000,000 (the ” Offering “).

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The Australian cannabis market has been maturing since medical marijuana was federally legalised in 2016.

The next year, Food Standards Australia New Zealand legalised low-THC hemp food for human consumption in Australia. The country went on to legalise medical marijuana exports in 2018, allowing medicinal marijuana products developed in Australia to be exported to licenced recipients in countries where the drug is legal.

Recreational cannabis remains federally illegal in the country, but recent legislation shows the door may be opening. In 2019, the Australian Capital Territory passed a bill allowing for the possession and growth of small amounts of cannabis for personal use. The law went into effect on January 31, 2020.

More recently, in late 2020, the Therapeutic Goods Administration greenlit the sale of low-dose cannabidiol (CBD) through over-the-counter methods without a prescription. The ruling from the Australian regulatory agency is expected to officially come into effect in February 2021.

With these and other changes in the works, Australia’s cannabis industry is projected to have long-term potential. The legal cannabis market in Oceania is expected to be worth US$1.55 billion by 2024, with Australia accounting for 79 percent of the region’s market, Prohibition Partners forecasts.

According to a study from FreshLeaf Analytics, the value of the medical market in Australia reached AU$95 million in 2020, and the firm expects revenue to jump again to over AU$150 million in 2021. In short, Australia’s role in the global cannabis industry will certainly continue to grow.

Here the Investing News Network profiles 10 ASX cannabis stocks with market caps between AU$30 million and AU$225 million. All ASX cannabis stocks below are listed in order of market capitalization from largest to smallest, with data compiled using TradingView’s stock screener on January 12, 2021.

1. Creso Pharma (ASX:CPH)

Market cap: AU$209.83 million

Creso Pharma was the first company to import medical cannabis into Australia and the first to launch these products in Switzerland for people, as well as animals. The cannabis company’s anibidiol product was the first hemp CBD complementary feed in animal health thanks to a partnership with Virbac Switzerland. Creso Pharma has also launched cannaQIX in Switzerland; it was the first CBD nutraceutical in human health.

The company’s medicinal cannabis product lines cover therapeutics, nutraceuticals, animal health, lifestyle and topicals.

2. Cann Group (ASX:CAN)

Market cap: AU$176.84 million

Cann Group provides a range of medicinal cannabis products for patients in Australia and globally. In 2017, the company was granted Australia’s first cannabis research licence, as well as the first medicinal marijuana cultivation licence. Cann Group partners with leading medical scientists in Australia to research and harness the therapeutic potential of cannabinoids, terpenes and other bioactive constituents of cannabis.

The company has secured supply agreements in global cannabis markets, including the UK, Germany and other European segments.

3. Incannex Healthcare (ASX:IHL)

Market cap: AU$166.42 million

Incannex Healthcare is a clinical-stage cannabinoid medicine company with global export capacity. It has four clinical programs underway for the development of a variety of cannabis medicinal products aimed at major unmet medical needs, including obstructive sleep apnea, traumatic brain injury/concussion, sepsis-associated acute respiratory distress syndrome and temporomandibular joint disorder.

In 2020, the company worked to advance its clinical trials. By the second half of the year, cannabinoid products accounted for Incannex’s entire revenue stream.

4. Botanix Pharmaceuticals (ASX:BOT)

Market cap: AU$131.37 million

Botanix Pharmaceuticals has a product pipeline that includes three advanced clinical programs using synthetic cannabidiol for the topical treatment of serious skin diseases and for antimicrobial applications. The company also has an exclusive licence to use a proprietary drug-delivery system called Permetrex for direct skin delivery of pharmaceuticals.

Botanix Pharmaceuticals’ programs are focused on treating acne, rosacea, atopic dermatitis and microbial infection. The company secured a clear development path for its BTX 1801 synthetic cannabidiol antimicrobial product after the successful completion of a pre-investigational new drug meeting with the US Food and Drug Administration.

5. Althea Group Holdings (ASX:AGH)

Market cap: AU$114.2 million

Althea Group Holdings takes the concept of medical cannabis a step further with its work as a pharmaceutical-grade cannabis supplier. In addition to offering relief through accessible medical cannabis, the company is implementing components of the plant in its research on advanced drugs.

Althea has successfully expanded into the global cannabis market with a wholesale supply agreement to import a range of Althea-branded finished products for sale and distribution in South Africa beginning in Q2 2021. This agreement came on the heels of the news that the company is slated to become the first commercial supplier of Australian medicinal cannabis extract products to the German market, with all necessary licences for sale and distribution granted by the German government.

6. Zelira Therapeutics (ASX:ZLD)

Market cap: AU$113.79 million

Zelira Therapeutics’ efforts are on unmet clinical needs and on using medicinal cannabis to treat a range of diseases and disorders. Its most common target areas include pain, anxiety and sleep.

Zelira is largely focused on developing treatment options using plant-based medicinal marijuana, and currently has three clinical-stage programs with a focus on insomnia, autism and opioid reduction. The company is also conducting a pre-clinical research program to test cannabinoids in breast, brain and pancreatic cancer.

7. Medlab Clinical (ASX:MDC)

Market cap: AU$75.51 million

Medlab Clinical is a medical research and development company focused on novel biotherapeutics such as nutraceuticals and pharmaceuticals. The company is also developing pharmaceutical cannabis products.

In early 2020, Medlab Clinical launched the NanaBis Observation Study in Australia. NanaBis is a cannabis-based pain treatment drug that may prove useful as an alternative to opioid medication. It is also being used to investigate cancer pain management.

8. BOD Australia (ASX:BDA)

Market cap: AU$49.25 million

BOD Australia is focused on cannabis and hemp-related products. It develops, distributes and markets health and skincare products created using plant-based extracts in Australia. The company secured a foothold in the European cannabis market in 2020 with a AU$200,000 purchase order for four Swiss-branded hemp seed oil products to be sold in France, the Netherlands and the UK.

BOD Australia’s reach in Australia ranges from selling prescription and over-the-counter products to more than 1,000 outlets, such as pharmacies, retail stores and healthcare chains. It also has distribution agreements with two pharmacy wholesalers in Australia.

9. IDT Australia (ASX:IDT)

Market cap: AU$42.47 million

One of Australia’s oldest listed life science companies, IDT Australia is a pharmaceutical manufacturing company with extensive experience in the development and production of pharmaceutical products. Through its GMP-compliant facilities, the company provides full-scale services for new drug development, plus scale-up and commercial active drug manufacturing for local and international clients.

IDT Australia’s clients include Cann Group; IDT Australia is the manufacturer of the medical cannabis products that are a part of two of Cann Group’s export supply agreements with European and UK partners.

10. MMJ Group Holdings (ASX:MMJ)

Market cap: AU$31.04 million

MMJ Group Holdings has a wide range of cannabis investments, including healthcare products, technology, infrastructure, logistics, processing, cultivation, equipment, retail and research and development.

Among other companies, it has invested in Harvest One Cannabis (TSXV:HVT,OTCQB:HRVOF), which develops health and wellness products; Fire & Flower Holdings (TSXV:FAF,OTCQX:FFLWF), a recreational cannabis retailer that’s developed a variety of cannabis products and accessories; and MediPharm Labs (TSXV:LABS,OTQQX:MEDIF), a cannabis extraction company that received its cannabis oil production licence from Health Canada in 2018. MediPharm Labs has launched cannabis extraction services in Australia.

Investor takeaway

The presence of these ASX-listed cannabis companies shows that the cannabis industry in Australia is undoubtedly growing, as are investment opportunities in Australia’s cannabis industry. While recreational marijuana remains illegal in the land down under, the medical cannabis industry is thriving, making that side of the sector worth considering.

So far, Australia has no timeline attached to the legality of recreational use of marijuana, but it will be a story to watch over the coming years for those interested in the space.

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Legal cannabis is spreading. According to a new report by Grand View Research, the global legal marijuana market is expected to reach US$73.6 billion by 2027 with a compound annual growth rate of 18.1 percent.

A survey of over 1,000 US consumers found that the modern cannabis user is largely representative of the general population. Moreover, cannabis consumption today blurs the lines between strictly recreational or medical. In fact, more than 50 percent of consumers report using cannabis for both purposes. As THC and CBD products make their way into an even wider array of product categories, our frame of reference for the modern cannabis user will continue to evolve.

In 2019, the medical cannabis market took home a leading revenue share of 71 percent, driven by the widespread adoption of cannabis as a pharmaceutical alternative for a wide range of conditions, including cancer, arthritis, Parkinson’s disease and more. A growing need for effective pain management therapies is expected to boost product demand even further.

This INNspired Article is brought to you by:

Khiron Life Sciences Corp. (TSXV:KHRN) is a vertically-integrated medical cannabis company fully licensed to conduct its core operations in Colombia.Send me an Investor Kit

Major telehealth platforms in the medical cannabis industry

Telehealth represents the intersection between innovative technology and the forefront of medical science. While remote medical practice saw its beginnings more than half a century ago, recent technological advancements have connected more patients to physicians than ever before.

In the US, platforms like NuggMD and IndicaMD provide patients with an online medical cannabis card that enables remote purchase of the drug. Patients can meet with physicians over secure video chat and can be approved to access cannabis within minutes. Physicians typically follow-up with patients by email, recommending the types of cannabis that would best alleviate their ailments and ensuring that they don’t purchase the wrong products. Other platforms exist to oversee the rapid delivery of cannabis and hemp products to patients across participating states.

Other parts of the world are undergoing the same transition. It has been more than eight years since Colombia — a country that represents more than a quarter of the world’s total export quotas — decriminalized the possession of small amounts of the drug, and roughly four years since the country legalized medical cannabis. In 2019, Colombia’s Constitutional Court overruled a ban on the public consumption of cannabis, which many considered a stepping stone toward full legalization. Recently, Colombia became one of the first countries in the world to extend national health insurance for patients requiring medical cannabis as a first-line therapy.

Khiron Life Sciences (TSXV:KHRN) was the first firm in Colombia authorized to sell both high and low THC formulations of medical cannabis. The company owns a telehealth platform that has accounted for over 5,600 medical cannabis prescriptions issued to date. Additionally, in June 2020 the company’s Doctor Zerenia telehealth platform was responsible for 14 percent of Khiron’s total medical consultations.

Since becoming the first company to fill medical cannabis prescriptions in Colombia, Khiron reports that 92 percent of its patients have experienced a marked improvement in their primary condition after four months of treatment. In light of these results, the Government of Colombia issued a directive that Khiron’s medical cannabis products and clinic services be covered by the country’s major health insurance providers. While countries such as Germany and the Czech Republic have taken similar legislative actions, a key difference in Colombia is that cannabis is considered a first line therapy with a vast array of applicable medical conditions. With more than 94 percent of Colombia’s population carrying health insurance policies, Colombia is quickly becoming one of the most favourable jurisdictions in the world for patient access; moreover, it has been shown that patient uptake is significantly increased by insurance coverage.

The next step forward for telehealth platforms includes opportunities such as virtual patient education and the fast, reliable delivery of essential drugs such as medical marijuana. Virtual care is also expected to expand across different types of patients, including those requiring intensive care. In the wake of the COVID-19 pandemic, many long-term care facilities have already adapted remote patient monitoring to maintain the safety of staff and patients.

The focus: Accessibility and improving patient outcomes

Medical marijuana has the power to improve patient outcomes across demographics. In the wake of groundbreaking research, patients, physicians and retailers are working together to increase the drug’s accessibility for patients who require relief from a range of health conditions. Telehealth platforms have been instrumental in not only increasing accessibility to medical marijuana, but also in improving quality of life across diverse populations of people.

A recent study completed by Canopy Growth (NASDAQ:CGC,TSX:WEED) in November 2020 found the absence of long-term toxicity despite long-term usage of CBD in a preclinical model, supporting the advancement of recent initiatives aimed at discovering CBD’s full range of therapeutic benefits. While CBD and tetrahydrocannabinol (THC) offer many of the same benefits, high levels of THC are responsible for most of cannabis’s psychoactive effects.

While the chronic pain segment dominated the medical cannabis market in 2019, application toward mental illness is expected to witness the fastest growth over the seven-year forecast period. Worldwide, a growing number of people suffer from depression, anxiety and other debilitating mental conditions with few low-risk pharmaceutical alternatives.

Medical cannabis is also becoming more popular among older adults. A recent study highlighted that cannabis use among individuals aged 65 and older has been steadily increasing, a trend that is consistent with reports from physicians who recommend cannabis in their daily practices. In the face of growing public acceptance and reduced stigma, we are beginning to see an increasing number of older adults rely on cannabis for relief against chronic pain, insomnia, neuropathy, anxiety and other conditions that traditionally call upon pharmaceuticals.

Much of the momentum in the medical cannabis market can be owed to the rise of telehealth platforms and health digitization efforts, increasing ease of access and promoting transparency. Over the next decade, legalization, increased awareness and the rise of remote medicine are expected to facilitate growth, creating lucrative opportunities for market stakeholders.

Takeaway

Telehealth platforms represent one of the easiest ways for patients, providers and retailers to collaborate remotely and fulfill needs faster. As more physicians and policymakers begin to recognize digital health tools as an advantage for maximizing efficiency and safety in health care, existing medical cannabis platforms are well-positioned to take advantage of a large-scale digital transition.

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 BioHarvest Sciences Inc. (CSE: BHSC) (the “Company” or “BioHarvest”) invites its shareholders and the general public to join a Live Video Conference (“Webinar”) on Thursday, January 21st, 2021 at 2:00 PM Eastern Standard Time (11:00 AM Pacific Standard Time). Ilan Sobel, CEO of BHSC, will host the event and discuss progress on Bioharvest’s Growth Plan, which will include highlights of the 2020 milestones achieved, key business capabilities built, and will provide an important overview of 2021 Priorities.

The presentation will be approximately 35 minutes, followed by a live question and answer session.

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