WHITEFISH, MT / ACCESSWIRE / February 13, 2015 / Canada's newly implemented Marijuana for Medical Purposes Regulations ("MMPR") program has experienced a number of delays over the past few months. With a lot of uncertainty surrounding approval timelines, many companies have begun moving into ancillary businesses to diversify risk and enhance long-term shareholder value. Investors may want to keep a close eye on these trends given the potential for near-term revenue.
In this article, we'll take a look at Enertopia Corporation's (OTC: ENRT) move into the health and wellness segment of the Cannabidiol (CBD) movement.
New Product Launch
Enertopia announced its foray into the health and wellness industry with the launch of its V-Love(TM) product at the Vancouver Wellness Show on February 13th through the 15th. With over 30,000 attendees at the show, the company should reach a large target demographic with free samples and educational materials. Management hopes to attend similar shows in the future, while launching a number of other health and wellness products.
CannabisFN Executive Interview | Enertopia Corp. OTC: ENRT / CSE: TOP / Robert McAllister, CEO from TDM Financial on Vimeo.
In addition to attending the show, the company partnered with leading women's health expert Maureen McGrath via a four-month radio sponsorship of her Sunday Night Sex Show on CKNW radio. The program is designed to raise awareness of women's health issues to a large and growing audience of listeners throughout Canada. Management hopes that partnerships like these will help drive near-term revenue to the new product lines.
While V-Love(TM) does not contain any cannabinoids, since they are illegal in Canada, the company aims to launch CBD-infused products in jurisdictions where they are legalized in the future. Hemp-derived CBDs are completely legal in the United States after the HIA vs. DEA court decision many years ago, which paves the way toward a fully-legal market for health and wellness products that take advantage of the benefits of cannabinoids.
Awaiting Approvals
Enertopia remains committed to becoming a licensed producer under Canada's MMPR program in addition to its new health and wellness business. In November 2013, the company became the first publicly traded Canadian company to pursue such a license, although evolving regulations and court challenges have slowed progress. The project is awaiting two decisions from the Canadian court system, the first of which is expected in late-February.
Enertopia Corp. is currently involved in two MMPR projects, the company's Burlington joint venture with Lexaria Corp. (OTC: LXRP) has applied to produce up to 10,000 kilograms of dried medical marihuana per year as a licensed producer under the MMPR program. With a 51% interest in the joint venture, the company is well positioned to benefit from any approvals.
In a press release from December 9th, 2014 Enertopia announced that the project has advanced to the Enhanced Screening Stage of the MMPR application process. The company has requested a Ready to build letter from Health Canada and is awaiting to be moved into the security clearance review, step 3 of 7 towards becoming a licensed producer.
Listed are the 7 steps to becoming a licensed MMPR producer in Canada.
1. Preliminary Screening
2. Enhanced Screening
3. Security Clearance
4. Review
5. Ready to Build Letter (if required by applicant)
6. Pre-license inspection
7. Licensing
The other project that Enertopia Corp. is currently working on is the Green Canvas project located in Regina, Saskatchewan. This project is scalable to 55,000 ft2, and is currently undergoing upgrades to 14,000 ft2 of those square feet to become compliant with Health Canada's MMPR standards
Looking Ahead
Enertopia stands at a key point in its corporate history. While Canada's MMPR environment has become a bit cloudy, the company remains on-track and working to get to the final stages of MMPR approval. Management has introduced a line-up of health and wellness products - and looks to add CBD-infused products in the near future - these plans should start to generate revenue in the near-term, so investors don't have to wait around for Health Canada's blessing.
Investor's benefit from a diversified company with its hand in both the production side of the business - through the MMPR application - and the retail side of the industry - with its health and wellness product line. With near-term catalysts in both segments, investors in companies, like Hemp Inc. (OTC: HEMP) or NutriSystem Inc. (NASDAQ: NTRI), may want to take a closer look at the stock sooner rather than later.
For more information, visit the company's website at www.enertopia.com or visit CannabisFN's Company Profile http://www.cannabisfn.com/mdc/enertopia-corp/ to learn more.
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SOURCE: Cannabis Financial Network