Opportunity for Innovation: The Importance of a Dealer’s License
Here at WeedMD, we don’t just grow cannabis, we also grow through innovation! We recognize that medical patients and shortly adult-use recreational consumers of cannabis want other product options and consumption methods than what are currently available. That’s why we need to be on the forefront of technological modernization in the industry so that as soon as regulations allow, we’ll be ready to go.
Canada’s legal cannabis industry is projected to reach up to $22.6 billion in size, according to Deloitte’s 2016 Insights Report, driven by the legalization of recreational cannabis later this year. While the base market accounts for up to $8.7 billion of that figure, the remainder of the annual revenue is expected to come from growers, infused product makers, security, and testing labs. The market expects the cannabis testing industry to be worth $1.5 billion by 2021. Deloitte expects consumer cannabis demand to be at least 600,000 kilograms per year, which exceeds the supply of licensed producers. As production scales up, the demand for cannabis testing services is expected to see a sharp increase.
While many observers and investors have typically thought of the cannabis market as being about cannabis flower, cannabis derivatives represent the fastest growing subset of the industry. Data supplied by Health Canada shows that cannabis oil and concentrate sales are rapidly outpacing sales for dried marijuana.
Once approved, our lab will be able to:
- Operate as a research incubator, focused on creating an intellectual property portfolio that can be built into commercial opportunities
- Begin clinical research (in partnership with licensed third parties) into the effectiveness of clinically-ready, whole-plant cannabis drug formulations and dose-delivery systems on specific indications
- Conduct analytical testing for Licensed Producers, home growers and designated growers, which all fall under a Section 56 exemption of the Controlled Drugs and Substances Act
- Possess, sell & transport medical cannabis oil and resin to international markets (Note: As mandated by Health Canada, import and export permits from the relevant international and Canadian regulatory authorities, will be required for all transactions to international markets)
Some of our goals to revolutionize this segment of the industry through research and development include:
- Overcoming the restrictions of smoking or vaporization of dried flower
- Providing for dose-to-dose consistency, quality and effects
- Changing the dosage regimen from grams of dried flower per day to mg per dose
- Allowing for dosage forms to be targeted to specific indications
- Creating sustained release and rapid release formulations for pain and sleep, respectively
- Increasing acceptance of cannabinoid-based therapies for both patients and prescribers
Obtaining a Dealer’s License is the natural next step that will enable us to expand our product offerings which is critical to the company’s international expansion strategy. Pending approval of the Dealer’s License, we will greatly increase our speed to foreign markets, broaden our patient base internationally, and create a greater revenue opportunity for the company.
WeedMD is well positioned to meet the increasing international demand for medical cannabis and its derivatives in legal markets like Israel, Germany, Italy and Australia. We are rapidly completing the fully-funded first phase of expansion at our facility in Strathroy, Ontario, which will increase the company’s growing footprint to over 220,000 square feet and increase its capacity to supply more than 20,000 kgs per year of cannabis at one of the lowest costs in the industry.
Remember, with WeedMD we’re in this together!