to read What Will WeedMD Do With CX Industries?
A few years ago, we visited WeedMD’s (WMD.V) (WDDMF) state-of-the-art cultivation facility in Aylmer, Canada and were impressed with the structure of the operation. Shortly after our visit, the Canadian cannabis company announced that it would put a major focus on the cannabis oil market and formed CX Industries Inc. to do so.
CX Industries specializes in extraction, toll processing and third-party product formulation from its fully licensed facility in Aylmer. Last year, the company announced that CX plans to process more than 50,000 kilograms of biomass per year (when it is operating at peak production). When we first learned about the launch of the division, we were favorable on the plan for the business unit to capitalize on a burgeoning market ahead of the legalization of cannabis 2.0 products in Canada.
Last year, WeedMD issued an update on CX and reported that it is offering tolling and white labelling services to other Canadian cannabis producers and brands. Last year, two Vitalis Q90 extractors at CX Industries were installed to commercialize products and we are waiting to learn more about this division of the business.
During the last year, WeedMD has been under considerable pressure and the market seems to have lost faith in it. The company has been negatively impacted by a change in management team, less than optimal performance by the outdoor facility, and more limited access to equity capital. We are cautiously optimistic with WeedMD and will monitor how the story evolves from here.