NEW YORK, Feb. 23, 2021 /PRNewswire/ -- The cannabis industry is once again gaining momentum as new jusidicitions open to CBD and North American cannabis companies find their footing. As the industry recovers after a rocky start, extracted products look primed to take the top spot in the market. In an industry flooded with cannabis biomass, value-added extraction products offer greater medical use, longer shelf lives, and easier access to emerging markets. The global medical cannabis extraction market is set to rise at a CAGR of 16.20% up to 2028. In preparation, companies like Pure Extracts (CSE:PULL) (OTCPK:PRXTF) (XFRA: A2QJAJ), Valens Company Inc. (TSX:VLNS) ( OTCQX:VLNCF), MediPharm Labs Corp. (TSXV:LABS) ( OTCQX:MEDIF), Neptune Wellness Solutions Inc (NASDAQ:NEPT) (TSX:NEPT), and Heritage Cannabis Holdings Corp (CSE:CANN) ( OTCQX:HERTF) are establishing themselves as key extractors.
Pure Extracts Forms Key Extraction Partnerships
Pure Extracts (CSE:PULL) (OTC:PRXTF) (XFRA: A2QJAJ) is quickly building itself into one of the most recognized players in the Canadian extraction industry. The Company utilizes cutting-edge CO² and ethanol extraction and production out of its EU-GMP compliant extraction lab located just north of Whistler, British Columbia. In a highly competitive cannabis extraction market landscape, Pure Extracts has been developing key partnerships to expand its footprint throughout the Canadian market and emerging international markets.
On February 18, Pure Extracts announced that the Company had entered into a Cannabis 2.0 distribution agreement with Canada House Wellness Group to distribute Pure Extracts' line of concentrate products through Canada House's established provincial distribution channels.
"This Agreement allows us to quickly and efficiently get our outstanding line of full spectrum oil vape and edible products to retail buyers across Canada while our Sales Amendment application is being processed by Health Canada," Pure Extracts CEO, Ben Nikolaevsky, said in the Company's release.
Canada House CEO Chris Churchill-Smith commented, "We've been extremely impressed with the Pure Extracts team and the brand presence they have established, particularly in the western provinces, and are looking forward to supporting their commercialization efforts in a mutually beneficial way."
On February 16, Pure Extracts announced a licensing deal with US-based Taste-T LLC, the producer of Fireball branded cannabis-infused gummies that leverages recognizable SKUs like Margarita Chill and Fireball Cinnamon. Under the agreement, Pure Extracts will receive exclusive rights to market these products in Canada, as well as first rights to numerous other countries around the world, including Germany and the UK.
"Taste-T's gummy lineup represents a great opportunity for our Company to leverage the Fireball name, one of the few U.S. cannabis products that can legitimately be called a 'brand'. And of course, as a Canadian company, Pure Extracts is ideally suited to export this product to numerous countries around the world," CEO Nikolaevsky said of the partnership.
2021 Has Already Seen Significant Developments in the Cannabis Extracts Market
The past couple of months have seen some significant developments for major players in the cannabis extraction space. Valens Company Inc. (TSX:VLNS) ( OTCQX:VLNCF) has expanded its portfolio of cannabis extract products and brands significantly so far in 2021. The company announced on February 11 the launch of its new CBD 100 high-potency CBD-dominant oil, and on January 25, Valens announced that it has acquired cannabis-infused edibles company LYF Food Technologies.
On February 17, MediPharm Labs Corp. (TSXV:LABS) ( OTCQX:MEDIF) announced that it has received its Cannabis Drug Licence from Health Canada, allowing the company to manufacture and supply drugs that contain cannabis, including pharmaceutical prescription drugs containing cannabis extracts. MediPharm says that this certification significantly enhances its opportunity to work with key pharma companies to produce existing approved cannabis drugs or develop new cannabis drugs.
On January 28, Neptune Wellness Solutions Inc (NASDAQ:NEPT) (TSX:NEPT) distributed its first commercial shipment of the company's in-house developed cannabis brand Mood Ring Hashish products through the British Columbia Liquor Distribution Branch. The product will soon be available through the provincial cannabis store and private licensed retailers throughout British Columbia. The company previously began shipping its Mood Ring High CBD Oil and High CBD Capsules in December.
On January 19, Heritage Cannabis Holdings Corp (CSE:CANN) ( OTCQX:HERTF) announced that the company had entered into a binding letter of intent for a three-year extraction and finished product supply agreement with Brazilian pharmaceutical distributor Entourage Participações S.A. As per the agreement, Heritage will supply Entourage with hemp-derived CBD dominant extract, cannabis-derived THC dominant extract, hemp-derived CBD softgels, and cannabis-derived THC dominant softgels for strictly pharmaceutical distribution in the Brazilian market.
As the cannabis market heats back up, the cannabis extracts market has an abundance of opportunities for leading extractors like Pure Extracts.
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