SEATTLE, WA, Aug. 07, 2018 (GLOBE NEWSWIRE) -- CFN Media Group (“CFN Media”), the leading agency and financial media network dedicated to the North American cannabis industry, announces publication of an article covering Emerald Health Therapeutics Inc.'s (TSX-V: EMH) (OTCQX: EMHTF) recent acquisition of a dealer license from Abattis Bioceuticals Corp. that enables it to compete in emerging market verticals. Canada’s cannabis market is projected to reach more than C$22.6 billionover the coming years, according to Deloitte, driven by the legalization of adult-use cannabis later this year. In addition to cultivation, this growth is fueling many other areas of the industry, including product development, analytical testing, and imports and exports. Investors may want to keep an eye on these areas as potential opportunities ahead.
Licensed Producer vs. Licensed Dealer
Most investors are familiar with Licensed Producers, or LPs, under the Access to Cannabis for Medical Purposes Regulations, or ACMPR. LPs are permitted to cultivate, process, and sell medical (and soon recreational) cannabis into the legal market, as well as export cannabis flower to international markets. However, there are some important limitations to the license that inhibit product development and import/export opportunities.
Licensed Dealers, or LDs, under the Canadian Controlled Drugs and Substances Act step in to fill some of these gaps. LDs are permitted to import and export cannabis oils and resins, as well as prepare the manipulation, formulation, dosage form, strength or package size of cannabis products, including mixtures with other additives, controlled substances, and non-controlled substances. These capabilities make the licenses extremely valuable.
There are less than 50 licensed dealers throughout the country compared to more than 100 licensed producers authorized byHealth Canada. Many licensed producers have been acquiring dealer licenses as a way to export higher value medical cannabis extracts rather than just cannabis flower. For example, Canopy Growth Corp.’s Tweed Inc. acquired a dealer license back inDecember 2016.
Recent deals highlight the value of a dealer license. In May, 2018 Auxly Cannabis Group Inc., formerly known as Cannabis Wheaton, announced the acquisition of DoseCann Inc., a late stage licensed dealer applicant based on Prince Edward Island. The stock transaction carries a price tag of up to $38 million, with a little wiggle room based on milestones achieved.
In June, Aurora Cannabis Inc. announced a proposed stock transaction worth $115 million to acquire Anandia Laboratories Inc.Based in British Columbia, Anandia is recognized as an industry leader, one of the largest and most established cannabis labs in the country.