RE:SedarCannabis 2.0 Products
The introduction of regulation by Health Canada to authorize the production and sale of Cannabis 2.0 Products (see “Regulation of Cannabis in Canada”) has created an opportunity for the Company to expand its product offering. As discussed below, the Company has a number of Cannabis 2.0 products under development but none, other than vape cartridges and pre-filled vape pens, are currently offered for sale.
Cannabis Extracts
The Company undertakes Company Processing and Bring-to-Market Services to produce cannabis concentrate in the form of vape cartridges for sale through its Medical Channel and Recreational Channel. In the 2020 fiscal year, the Company intends to expand its Processing capabilities for other cannabis extracts such as solventless extracts (e.g., rosin and live rosin), as well as solvent-based extracts such as shatter, wax and live resin, to expand Company Processing and Bring-to-Market Services. Rosin is resinous extract (live referring to extraction from fresh cannabis as opposed to dried cannabis), shatter is a sticky, hard and brittle cannabis extract, wax being a softer, more crumbly, extract and live resin an even softer more viscous form of cannabis extract, each derived from unique extraction and processing 10 techniques. For fiscal 2020 and beyond, the Company intends to produce a variety of different types of live resin (where the differences are found in the terpene profile, consistency of the material and aroma), as well as shatter and wax. The Company intends to offer these Cannabis 2.0 Products in both the Recreational and Medical Channels under specific in-house brands that are under development.
Cannabis Topicals
The Company intends to expand its Company Processing and Bring-to-Market Services with a view to selling a new set of tetrahydrocannabinols (“THC”), the principal mind-altering ingredient found in the cannabis plant, and cannabidiol (“CBD”), a naturally occurring compound found in the resinous flower of cannabis, infused topical lines through its Medical Channel and Recreational Channel. The Company expects these topicals will be offered in a variety of forms including roll-ons and ointments/creams.