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t is news many investors have been waiting for. 

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An innovator in cannabis-related products, Lifestyle Delivery Systems Inc. (CSE: LDS, OTCQB: LDSYF, Forum) announced recently that it has made its first white label cannabis oil order.

The open-purchase order was made through it’s affiliate CSPA Group Inc. for 300 litres of high quality distillate a month through December 2018. The finished distillate will be capable of filling 300,000 one-gram vape pen cartridges. The biomass and processing for the extraction and distillation will be supplied by CSPA. This news sets the stage for a series of advancements coming down the pipeline from LDS.

Company CEO, Brad Eckenweiler, elaborates further.

“This purchase order emphasizes the acceptability in the market for a dependable high quality white label producer. A producer capable of supplying established brands with the highest quality finished material and allowing those brands to focus their resources on marketing and building their brand with the assurance that they have the highest quality ingredients.”

Information on pricing and cost hasn’t been released yet, though taking a general look at the market, analysts with California-based BAS Research tell Stockhouse Editorial that the average wholesale cost for quality distillate oil (~85% and above) can run around $10,500 (USD). This comes from permanent, established facilities run by operations such as Lifestyle Delivery Systems. Prices have been known to be as low as $8,000 - $9,000 from some of the lower-grade collective co-ops operating in Southern California.

At the low end, this would put CSPA’s monthly revenue at $2.4 million, though it would likely be closer to $3.1 million, or $24.8 million from now until December.

Earlier this week, LDS made more news with CSPA when it announced a further purchase order for 15,000 half-gram units of its Rveur Live Resin product. The units of the Rveur Live Resin product will be pushed to CPSA for product placement into dispensaries. At $45 per gram wholesale, this equates to a $337,500 USD purchase order for LDS.  The order will be filled with eight different strains of the Rveur product. More and more, consumers want to know more about where their cannabis products come from and how potent it is. LDS heard these requests loud and clear and its Rveur Live Resin will come in 0.5-gram individual glass containers and consumers will have the added benefit of informational test results that include cannabinoid concentrations as well as terpene profiles. 

To date, CPSA has also converted more than a ton of concentrated bio-mass into high-grade extracted material for licensed manufacturers in California to use in their products.

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These purchase orders will also give a significant boost to Life Style Delivery’s current state-compliant business. Using proprietary technology, the vertically-integrated Company produces infused strips – CannaStrips - similar to breath strips, that offer a safer and healthier alternative to smoking cannabis. Placing a strip on the tongue is one of the fastest ways to get cannabis into the bloodstream to give quick pain relief.

CannaStrips also offer a new way to accurately measure the dosage and purity of the product. The lifecycle of these products begins at the Company’s isogenic pollination nursery and continues to its state-of-the-art production facility. LDS is also directly involved in the growing of medicinal ingredients for, and the manufacturing of, its products.

CEO Eckenweiler added that these orders represent the beginning of a planned expanse in market awareness as its products become more available at retail locations across California.

FULL DISCLOSURE: Lifestyle Delivery Systems Inc. is a paid client of Stockhouse Publishing.

Read more at https://www.stockhouse.com/news/newswire/2018/05/18/california-cannabis-innovator-signs-major-white-label-order#hBlMk26Bv87Rrc2M.99