October 17, 2019 approaches.
Most cannabis investors will immediately connect that date as Phase 2 for the legalization of cannabis in Canada. On October 17th, Canada will legalize cannabis edibles and other cannabis-infused products, as well as the use of new cannabis accessories – such as vaporizers.
Canadian based cannabis companies are well advanced in their planning for this next step in the commercialization of cannabis north of the Border. Cannabis investors will already have seen a multitude of “cannabis extraction supply agreements” announced.
The cannabis oils extracted from the dried flower are the primary input in a wide array of cannabis concentrates and value-added products. Canadian extraction specialists such as MediPharm Labs Corp. (TSX: V.LABS, OTCQB: MLCPF) and Valens GroWorks Corp. (CSE: VGW, OTCQB: VGWCF) have both released a flurry of news on extraction agreements.
However, Canada’s cannabis industry needs more than just cannabis oils to prepare for the new markets opening up in October. Also needed are vaporizers and other cannabis accessories that are an integral component of the market for value-added cannabis products.
The Seed Investor just reported on one major announcement here.
U.S.-based PAX Labs simultaneously announced deals with several Canadian LP’s for its premium vaporizers. This includes Aurora Cannabis (NYSE: ACB, TSX: ACB), Aprhia Inc (NYSE: APHA, TSX: APHA), Organigram Holdings Inc. (NASDAQ: OGI, TSX: V.OGI), and The Supreme Cannabis Company (TSX: FIRE).
But PAX Labs is a private company. As Canadian cannabis companies look to lock up more deals with U.S. suppliers, who else stands to benefit?
Regular readers of The Seed Investor can answer that question. Ionic Brands Corp (CSE: IONC) is a U.S.-based company with a portfolio of premium cannabis consumer concentrate brands.
This multi-state operator (MSO) is already active in three U.S. states: Washington, California, and Oregon. Included in its portfolio is one of the top-selling vape brands in Washington State. Ionic also boasts substantial cannabis extraction operations in Washington.
Markets are currently greatly unsettled by new political/trade tensions. Now is the time for cannabis investors to be nimble in seeking out opportunities.
As Canada’s cannabis industry gears up for October 2019, investors still have the chance to position themselves in the markets – and companies – that are in line to benefit from this next phase.
DISCLOSURE: Ionic Brands Corp is a paid client of The Seed Investor.
Published at Fri, 07 Jun 2019 16:37:50 +0000