Tony Deyes
August 15th, 2019
App, Exclusive, News, Top Story
The cannabis industry may have started out small, especially where vapes are concerned, but things are changing rapidly, meaning that producers will have to scale their operations quickly and effectively to stay competitive.
As of the US mid-term elections, 33 states have legalized cannabis for medical purposes, and ten of them as well as the District of Columbia have also legalized recreational adult use. Canada legalized cannabis nationwide in 2018, and is expected to legalize cannabis-derivative products, including vapes, in December. European attitudes and regulations are rapidly liberalizing, and with a population of over 700 million – twice the size of Canada and the US combined – Europe is quickly shaping up as the next big cannabis market.
Click here to see the company investor presentation
Concentrate sales are now outpacing flower as consumers increasingly look for healthier, discreet, and convenient methods of enjoying cannabis, and in 2018, vapes comprised over 30% of California’s cannabis market. Industry watchers were so impressed by the segment’s performance, and certain of its continued rise, that 2019 was dubbed “the Year of the Vape”.
Automation Offers Efficiency
Filling cartridges can be a tricky, messy, and worst of all, a time-consuming process, and without the right equipment and procedures, can lead to uneven cartridges, wasted product, or even burned or damaged extract. And as the segment flourishes and demand spikes, companies that were once content to fill their cartridges/disposables by hand will need to adapt in order to compete, and automation is the fastest, most cost-effective way of doing exactly that while saving valuable time, reducing costs, and eliminating waste.
Convectium/Jacksam Corporation (OTCQB: JKSM), the creator of the first wax & oil disposable, one of the first dry herb vaporizers, and the industry’s first American-designed filling machine, is a leader in automation for the cannabis industry.
Convectium’s pre-assembled 710Shark oil filling machine is adaptable for all viscosities and can be used to fill cartridges, pods, syringes, and tinctures. Coupled with its 710Captain capping machine, companies can fill and cap 100 pre-racked cartridges in under a minute (6000 cartridges per hour), increasing their output up to an amazing sixty times. The company’s entire line of US engineered, proprietary hardware and infrastructure is focused on automation and quality, and the company offers a support team dedicated to on-site maintenance & service.
Both machines have just been modified to be fully compatible with CCell compression cartridges, the leading cannabis/CBD concentrate cartridges in the world, shipping more than 20 million units per month, according to Jupiter Research. Domestic distributors include Kush Bottles, 3 Win Corporation, CannaBrands, and TILT.
Based on its new “open system” strategy, Convectium brings the benefits of automation to almost any concentrate company using commercially available cartridges, pods, vape pens, or other devices.
Click here to see the company investor presentation
Commenting on the change, Jacksam/Convectium CEO Mark Adams said, “Up until now companies using CCell cartridges couldn’t access our state-of-the-art automation equipment which delivers up to 287% more efficiency and 80% labor savings. Our new “open system” approach catapults our market potential to another level by enabling large-scale CBD or THC concentrate companies to increase output, reduce risks, costs and waste, and beat the competition. These unique machines enable concentrate companies to automate the “fill and cap bottleneck” and cement Convectium’s position as the only true scalable system in the business.”
As a result of the adjustment, Convectium plans to announce special upgrade pricing this week for all existing customers and bundled packaging for new customers.
Complete Brand Services
But automation is only part of the Convectium story. They’re a one-stop shop for custom cartridges, pods, disposables, and syringes in a variety of styles (ready to ship within two weeks after artwork approval), batteries, accessories, packaging, and sealing.
And their offering has just expanded, thanks to a reciprocal distribution agreement with The Blinc Group, a leading provider of customized vaping solutions for the cannabis industry, giving Convectium access to Blinc’s X-Pro cartridges and pods, disposables, and batteries, as well as its customized design and vaping development work.
Click here to see the company investor presentation
Adams added, “Partnering with The Blinc Group allows us to offer customers the ability to work with the leading provider of customized solutions in the vaping industry. The Blinc Group has proven to be the leader in quality, innovation, and safety in the industry. Together, the companies can rapidly expand market share by combining the best in class filling and capping solutions with the best in class customized products in the industry. The partnership is a major step in our new strategy of providing a full suite of solutions through new partners and distributors. We look forward to introducing The Blinc Group’s customized services and hardware to our expanding customer base.”
Aurnad Dumas de Rauly, CEO of The Blinc Group said, “We are very excited about this partnership, as Convectium’s industry footprint is well established and will help introduce Blinc’s high precision, compliant & science-based vaping hardware to a broader audience. The combination of Convectium’s proprietary streamlined automation solutions with Blinc’s commitment to providing innovative, quality-controlled and safe products, will provide an unprecedented integrated solution for MSOs, LPs, extractors and brands looking to optimize their operations and go-to-market strategy.”
With a team of in-house designers, engineers, product developers and product managers, Convectium is focused on helping companies build their brands, raise brand awareness, and get custom-branded products onto dispensary shelves and into the hands of customers quicker. Over 100 companies, including many dominant brands in the space, rely on Convectium for machinery, hardware, design, packaging, and total automation solutions, and the company has operations in seven US cities, utilizes two factories in the US, and three dedicated factories in Shenzhen, China.
Click here to see the company investor presentation
As the cannabis industry continues to evolve, so will the ancillary businesses created to support producers, and savvy investors should consider diversifying their portfolios to include these, especially industry leaders like Convectium.
For more information, keep watching this page, and visit https://www.convectium.com/
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About Tony Deyes
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