Marketnewsupdates.com News Commentary
Cannabis not only has a profound healing effect on humans, but also on animals. Pet owners across Canada are using cannabinoid (CBD) oil products on their adored pets for a range of health issues. In 2016, pet owners in the U.S. alone spent more than $30 billion on treatments, according to the American Pet Products Association. Once legalization becomes a reality this year, the true potential of the Canadian cannabis industry will be unleashed, thanks to a big demand boost from the estimated $10.2 billion pet medicine market in the U.S. Companies that could provide pet owners with high-quality CBD oil products include Aphria Inc. (OTC: APHQF) (TSX: APH), Canopy Growth Corp. (OTC: TWMJF) (TSX: WEED), Emerald Health Therapeutics Inc. (OTC: EMHTF) (TSX-V: EMH), Cannabis Wheaton Income Corp. (OTC: CBWTF) (TSX-V: CBW) and RavenQuest BioMed Inc. (CSE: RQB).
Global News reported that using pot products in pet treats is gaining so much popularity that they’re “flying off the shelves” at one dispensary in Toronto. A big reason for that is consumers are beginning to recognize the health benefits of CBD, an active constituent in cannabis plants completely different from tetrahydrocannabinol (THC), the psychoactive component, so they could not get “high” as a side effect. It is also convenient that CBD oil extracts used on pets could be both applied externally on the skin or ingested internally with food. Importantly, these animals have, in general, responded well to CBD treatment.
CBD is legal in Canada as long as the THC content is below 0.3% dry weight. Within the USA, CBD is currently illegal only in four states – Idaho, Nebraska, South Dakota and Kansas (some states require a prescription to gain access).
One company specifically looking at this area and improve its CBD yield is RavenQuest BioMed Inc. (CSE:RQB), which has its operations set in both Alberta and Ontario, two of the most dynamic markets nationwide.
A $22.6 Billion Dollar Industry Could Get Even Bigger
Deloitte estimates that the Canadian ancillary cannabis industry could be valued at $22.6 billion annually, and this is just for human consumption. The market for CBD specifically is also projected to grow 700% a year by 2020, according to Forbes. Imagine once legalization materializes, there is every chance pet owners countrywide could allocate the $10.2 billion they will spend this year on pet medicines toward CBD oil products designed just for animals.
RavenQuest‘s Increases Production Surface
RavenQuest BioMed Inc. (CSE:RQB) has already moved ahead of competition on the efficiency front as they verge on a sevenfold increase in plants per square foot. It’s currently using a unique automated plant growing technology called Orbital Garden – a stackable, rotational system that moves plants in a circular motion around a light bulb so they receive the maximum nutrients. This technology is able to match production from 500 square feet of flat growing surface with only 70 square feet of floor space stacked-up with growing units, reducing electricity costs by 70-80% and nutrient costs by 25%, more efficient than those of Aphria et al.
Leading Grams Per Square Foot Producer
RavenQuest BioMed Inc. acquired Alberta Green Biotech, a 35,500 square foot facility located in Edmonton with expected annual production of 7,000 kilograms. It has also added 2,000 kg of production through the recent acquisition of Bloomera, a licensed producer located in the Greater Toronto Area, Canada’s largest cannabis market. RavenQuest’s proprietary grow methodologies could help to ramp production up to 11,000 kg from the two facilities. With further plans to scale their operations in the future, RavenQuest’s projected production capacity is expected to reach 26,000 kilograms.
RavenQuest BioMed Inc. (CSE:RQB) recently completed their final tranche of financing with gross proceeds totalling CAD $26,329,125. Ravenquest remains undervalued at just an CAD $85 million market cap. RavenQuest is the new kid on the block, but has made significant strides with technology and acquisitions to compete with the bigger companies.
Aphria Inc. (OTCQB:APHQF) (TSX:APH.TO)
Aphria is one of Canada’s lowest-cost medical cannabis producers. The company sells its products through both retail and wholesale channels. It’s also engaged in the research and development and commercial production of cannabis oil. In October, Aphria made its first shipment of cannabis oil to Medlab Clinical Ltd., an Australian medical life science company.
Canopy Growth Corp. (OTC:TWMJF) (TSX:WEED.TO)
Canopy Growth Corp., formerly known as Tweed Marijuana Inc., was founded by Bruce Linton in 2014 and is based in Smiths Falls, Ontario. Canopy is the first federally regulated, publicly traded cannabis producer in North America and is Canada’s largest producer. It operates numerous production facilities across Canada and around the world with over 700,000 square feet of production space licensed under Canada’s medical cannabis framework.
Emerald Health Therapeutics Inc. (OTCQX:EMHTF) (TSXV:EMH.V)
Through its subsidiary Emerald Health Therapeutics Canada Inc., a licensed producer under ACMPR, the company is authorized to produce and sell dried cannabis and cannabis oil for medical purposes. In September 2017, Emerald Health launched Island Mist, its proprietary high-CBD and high-CBD-to-THC-ratio dried flower product.
Cannabis Wheaton Income Corp. (OTCQB: CBWTF) (TSXV:CBW.V)
Cannabis Wheaton is a cannabis streaming company facilitating growth by providing partners with financial support and sharing collective industry experience. The company recently acquired all of the issued and outstanding shares of RockGarden Medicinals Inc. The acquisition furthers the company’s streaming platform strategy by providing them with additional resources and regulatory tools to help accelerate Wheaton Licensing Program participants’ pathway to licensing under the Access to Cannabis for Medical Purposes Regulations.
Pot For Pets Is For Real
By the time cannabis is fully legal in Canada, people won’t be the only ones “sniffing” out its health uses. The CBD oil extracted from cannabis could also have strong uses for treating medical ailments suffered by animals. It’s already being advocated by veterinarians in the biggest cannabis jurisdictions in the U.S., and the same trend is growing in Toronto.
As the rules set on CBD products become clearer, producers like RavenQuest BioMed Inc. (CSE:RQB) that focus on product quality and consistency would be the first to benefit from this sector. Using cannabis on animals is a delicate topic, so only the best products would be qualified should vets be allowed to prescribe down the line. With a genetics research project in place as well as innovative production ideas, RavenQuest BioMed Inc. (CSE:RQB) may just be the first to have “treats” for our pets.
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