FinancialBuzz.com News Commentary
Cannabis legalization proposals are becoming more popular, and the negative stigma associated with such products is slowly fading away. As Americans head to vote and are very divided ideologically on social and economic issues, there’s something most actually agree on: cannabis legalization. Ahead of the election, 33 states have already adopted medical or adult use, and now, three of the four states voting on recreational use are red conservative leaning states such as Arizona, Montana, and South Dakota. New Jersey, which swings liberal, is also considering adult-use legalization. “The prevailing wisdom has been that a conservative administration would be less receptive, but I think legalization is now inevitable on its own kinetic energy,” said Sturges Karban, Chief Executive Officer of cannabis logistics company ManifestSeven, according to a report by The Philadelphia Inquirer. MediPharm Labs Corp. (OTC: MEDIF) (TSX: LABS), Village Farms International, Inc. (NASDAQ: VFF), Sorrento Therapeutics, Inc. (NASDAQ: SRNE), Aphria Inc. (NASDAQ: APHA) (TSX: APHA), Green Thumb Industries Inc. (OTC: GTBIF)
The more welcoming perception towards cannabis legalization can be attributed to, in large part, the passage of the 2018 Farm Bill, which legalized production of industrial hemp, transforming it into a mainstream agricultural product. Soon after, numerous categories of CBD products started to appear. Now, the growing awareness about the therapeutic benefits of cannabidiol has influenced people to buy such products, even at relatively high costs. As a result, mainstream retailers are now focusing on selling CBD-based products, as these have a higher profit margin. According to data provided by the Brightfield Group and published by Hemp Industry Daily, a survey of more than 5,000 CBD users in the U.S. reveals that 24% have used it to help quit smoking and quitters are often replacing cigarettes with either smokable hemp or vaping. And, 41% of quitters have entirely replaced tobacco with hemp CBD.
MediPharm Labs Corp. (OTCQX: MEDIF) (TSX: LABS) announced last week breaking news regarding the, “launch of LABS Cannabis CBD Isolate, the first in its LABS Cannabis branded product line and the first product of its kind in Canada.
Designed for Canadians seeking a THC-free experience, this 99% pure CBD crystalline isolate will be available through retailers across Canada.
“Produced at commercial scale, LABS Cannabis CBD Isolate has only trace amounts of THC – less than 0.2% – which makes it an excellent choice for a broad range of wellness consumers and patients seeking the potential benefits of CBD without the intoxicating effects of THC,” said Pat McCutcheon, CEO, MediPharm Labs. “For consumers who wish to consume CBD as part of their daily regimen or for specialized paediatric care in situations where CBD has been prescribed by a physician for a specific indication, LABS Cannabis CBD Isolate is the right choice.”
All Natural Cannabinoid Product: Pure CBD crystalline isolate manufactured in MediPharm Labs’ GMP-certified facility, is a high-quality, high-potency, fine-white crystalline powder with 99% pure CBD in a concentrated form. The product is an all-natural cannabinoid product made from cannabis extract refined through numerous steps. Each container of LABS Cannabis CBD Isolate contains 500mg of product in powder form. Because CBD crystalline isolate does not have intoxicating effects, and is almost flavourless and odourless, it can be taken daily and consumed in several different ways by new or experienced wellness consumers.
“MediPharm Labs has developed a reputation for quality and purity. LABS Cannabis CBD Isolate has the highest purity of all currently available concentrate formats and will now be an incredibly versatile and valued ingredient for consumers,” added Mr. McCutcheon. “
Targeting Canada’s Prospective Cannabis Health Products Market: In the fall of 2019, EY Canada conducted a survey of approximately 3,000 individuals to provide a uniquely Canadian perspective on cannabis consumers1. A segment coined “Wellness Inquisitor” was identified to include approximately 1.1 million Canadians who consume almost daily and spend about $165 each per month on cannabis products. Wellness inquisitors reported that quality (83%) and intended effects (76%) are the most important purchase criteria followed by terpene profiles (43%) and brand (40%). Clinical research (56%) and the advice of health care practitioners (42%) were reported to be the most important information sources and influences over this group’s purchasing decisions.
In September 2020, Health Canada released its Summary Report: Consultation On Potential Market For Health Products Containing Cannabis That Would Not Require Practitioner Oversight2. This report revealed that nearly two-thirds of 1,104 respondents polled were interested in buying “cannabis health products”, with the majority of consumers interested in using the products to treat pain and inflammation. About 76% of consumers were aware of sub-populations who would be interested in CBD-dominant cannabis health products and felt anyone experiencing pain, trouble sleeping, or suffering from a chronic or mental health condition would benefit. Seniors, veterans, women experiencing menopause and athletes were all groups of interest.
Visit the LABS Cannabis website to learn more at www.labscannabis.com