This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

Widely hailed as Cannabis 2.0, the current phase of growth in the legal cannabis market is fueled by cannabis-derived products based on oils, distillates, and isolates. These extracts contain various active ingredients, or cannabinoids, like CBD, THC, and rare cannabinoids such as CBN, CBG and Delta-8 THC. You may have noticed the explosion of CBD products in health food, grocery, and even convenience stores. According to Grandview Research, the global CBD market was valued at $2.8 billion in 2020 and is expected to grow at a 21.2% CAGR over the next several years. It’s a vast opportunity in its infancy, and all of it depends on the extraction and processing of quality base ingredients from the cannabis plant.

Hempsana Inc. recognizes the opportunity and is moving quickly to become a major global player in the world of cannabis derivatives. The company has licenses and approvals in place both in Canada and in the European Union, an EU-GMP compliant extraction, production, and distribution facility, and several contracts already active. Helmed by a diverse and experienced executive team, Hempsana is poised to go public in the very near future and continues to expand its presence across the derivatives market.

Not Just CBD

After decades of effective prohibition on both the consumption of and research into the cannabis plant, the science of cannabis is starting to hit its stride. Over 100 cannabinoids have been identified, going far beyond the widely-known CBD and THC. There are many research studies and clinical trials of the potential benefits of cannabinoids, and scientists have identified a natural system in the human body that interacts with them called the endocannabinoid system. The US Food and Drug Administration went so far as to publish a brief encouraging and supporting cannabinoid research and drug development, a clear sign the science of cannabis has hit the mainstream.

How does all of this research and validation tie into Hempsana and its mission to be the most trusted name in cannabis derivatives? First, researchers and pharmaceutical companies certainly comprise a target market for Hempsana’s cannabinoid derivatives. They need something pure and clean to study, and Hempsana can provide. Second, the scientific momentum is fueling acceptance of the plant as a viable alternative to some more traditional products, widening Hempsana’s playing field. Perhaps most importantly, research has uncovered over 100 cannabinoids, each one with the potential to benefit people. Each of these compounds requires extraction and purification, giving Hempsana market opportunities far beyond the common CBD and THC array of products.

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To be clear, Hempsana is not ignoring CBD and THC but rather sees an opportunity to be an early mover with cannabinoids such as CBN and Delta-8 THC. In Hempsana’s native Canada, there are currently a couple of major players in the cannabis extraction world. Both MediPharm Labs Corp. (TSX: LABS) (OTCQX: MEDIF) (FSE: MLZ) and The Valens Company (TSX: VLNS) (OTCQX: VLNCF) are mostly focused on THC and CBD extracts, and rightfully so. Hempsana firmly believes two things. One, the market growth and potential for the global THC and CBD products is very large and allows room for competitors. Two, there is tremendous value in developing lesser-known cannabinoid products.

Hempsana’s Story

Hempsana was founded in October 2018 in Toronto. The company received confirmation to extract CBD oil from industrial hemp in Hungary, EU in February 2019. This was quickly followed by a Health Canada Industrial Hemp License in August 2019, and the Health Canada Standard Processing License in May 2020 for its Canadian operations. Hempsana’s wholly owned 8,000 square foot EU GMP compliant facility located in Goderich, Canada, was fully completed and commissioned in Q4 2020, with commercial production launched in December 2020.

The Hungarian component is a key to future growth, providing entry into the lucrative EU market. The Canadian EU-GMP compliant facility was also built with international export capabilities in mind, as those requirements are generally considered the most stringent in the world. From a facility standpoint, the table was set in the first two years of Hempsana’s existence.

Since its inception, the company has executed a number of processing and offtake agreements, with current production of cannabinoid derivatives set for over 27,000 kg of biomass extraction.  Hempsana offers three basic types of ingredients: crude full-spectrum oil, full-spectrum high concentrate distillate, and active pharmaceutical ingredient (API) grade isolate. These ingredients form the foundation of products ranging from topical creams, to foods, to pharmaceutical drug candidates.

Hempsana sells ingredients wholesale to qualified buyers that formulate and manufacture their own products. The company also offers more comprehensive services that manage refinement, and include purification, remediation, and even formulation services to cannabis companies without those capabilities. Hempsana also offers white label services, partnering with clients to take products from the idea stage all the way to a ready-to-sell package.

What’s Next

Consider this all an introduction to a new player in the global cannabinoid derivatives market. Hempsana recently announced a business combination agreement that sets the stage for its near-term go-public event, which will introduce the company to new funding sources to help fuel its growth plans. Hempsana is currently in the process of partnering with national brands in Canada, EU, and Asia to create sales verticals in key growth areas including the health supplement, topical cream, vape, and edibles markets. It’s an exciting time for the people at Hempsana, and interested investors are encouraged to keep an eye on this space for further developments.

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Disclaimer

The above article is sponsored content. CannabisFN.com and CFN Media, have been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

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The legalization of cannabis in Canada on October 17, 2018 was seen as a progressive and forward-thinking development.It put Canada at the forefront of this exciting new industry, as the only country other than Uruguay to legalize cannabis on a federal level. However as dynamic as this legislation was, it was limited in terms of what was initially included. Although flower was covered under these new laws, they excluded a huge part of the industry; edibles and concentrates.

A report by Arcview Market Research estimated that cannabis-based food and drink reached an estimated $1 billion in 2017 in North America. The same report estimates the edibles market could reach an astounding $4.1 billion in the US and Canada by 2022.

Canadian Edibles Market

The Canadian market is preparing to capitalize on this trend. In late December, Health Canada released draft regulations, which dictate that edible cannabis products should be fully legalized by October 17 of this year. A recent report from Deloitte entitled ‘Nurturing new growth: Canada gets ready for Cannabis 2.0’ estimates the annual market for alternative cannabis products to be $2.7 billion, with edibles contributing to over half of that.

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With this incredible business opportunity, producers and distributors are looking at ways to capitalize on this vast new sector of the market. One company which looks to be well-positioned in this category is Indiva Limited(TSXV:NDVA) (US:NDVAF).

As a Licensed Producer of medical grade cannabis, Indiva is perfectly positioned for Cannabis 2.0. It has a growing roster of brands which already produce and distribute a wide variety of cannabis products to users across Canada. As an established company, Indiva plans to use its Canadian operations as a platform to launch into the edibles market, once the surrounding legislation is finalized.

Facilities and Distribution

Indiva has a 100%-owned, 40,000 square foot indoor production facility in London, Ontario. Its facility is world class, with quality assurance and control. A clean product is ensured by its climate controlled system, as well as pest and pathogen control. Its GMP-compliant, aeroponic grow systems are environmentally friendly and highly advanced. Already producing medical grade THC, CBD and hybrid strains, Indiva is positioned to use this facility to produce equally high-grade edible cannabis products.

In early June Indiva received an amended license from Health Canada for three additional grow rooms and three additional processing rooms, bringing the company’s annual cultivation capacity to approximately 1,000kg. The increased flower capacity will serve as raw material for Indiva’s 70 tonne extraction facility which is scheduled for completion in Q3 of 2019. Indiva’s extraction system will produce some 4 million grams of distillate annually at full capacity with the potential to be more profitable than flower at current market conditions. The three newly licensed rooms will be immediately populated with plants, using advanced aeroponic grow technology, with the first harvest expected in less than 10 weeks.

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Indiva has a supply agreement in place with the Ontario Cannabis Store (OCS) and has been delivering on the order since February and is preparing to deliver gel capsules.The agreement with the OCS has resulted in Q1 net revenue gains for Indiva. The company is executing on plans to grow its facilities and product offerings and awaits approval and licensing from Health Canada. Going forward, the company aims to add further distribution agreements with retailers in other provinces in 2019, using its active sales team already located across the country.

In the longer-term, Indiva plans to use its Canadian operations as a blueprint to launch globally into new markets, as cannabis laws around the world continue to come into play.

Indiva already has agreements with US based companies to distribute internationally, and it has issued a Letter of Intent to acquire a cultivation license in Denmark, where a four year pilot program which began in January 2018 allows the sale of medical cannabis. This would give Indiva an early advantage in the European market, which should become particularly lucrative as laws liberalize across the continent.

Impressive Product Line

Among its brands, Indiva has aligned itself with high-quality and experienced edible companies, namely Ruby and Bhang. Both companies are powered by Indiva, and will use the company’s cannabis oil extractions as the basis for edible products.

Ruby is the world’s first edible brand made with organic and all-natural ingredients. The product line will consist of infused sugar and salt crystals, which allows users to easily incorporate them into food and drink for the ultimate in personalized edible cannabis consumption. The line also offers fruit-based chews, pancake and drink mixes, candies and prebiotic supplements. The line will be infused with Indiva’s THC, CBD or a hybrid combination of both, offering a wide selection for those who wish to ingest cannabis, not inhale it.

Bhang Chocolate is one of the most recognised cannabis brand houses on the planet. Drawing from its diverse team, Bhang brings together over a decade of experience in the cannabis industry to create its award-winning product line. With reliable dosing and a cannabis-free taste, Bhang’s products are the ultimate in premium edibles. In addition to its range of cannabis-infused chocolates, Bhang also offers vapes, gums and mouth sprays.

Experienced Leadership

Indiva is led by CEO, Director and Co-Founder Niel Marotta. Niel managed a portfolio of over $1 billion as a fund manager at a notable US firm. He was also Vice President of a TSX listed natural resource focused company, and subsequently worked as an investment banker. As a graduate of McGill University’s commerce programme, Niel is the perfect leader to guide Indiva into this exciting new branch of the cannabis industry.

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Between its state of the art facility, calculated distribution network and expanding product offering, Indiva has set its sights high as Canada’s legal market enters the next phase of its development, the cannabis 2.0 revolution. With analysts predicting this to be a multi-billion dollar segment of the marijuana industry, Indiva has taken intelligent and bold steps to lay the groundwork for its success as edibles are legalized in Canada.

Disclaimer

The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/

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