There’s little doubt that cannabis extracts account for a growing percentage of the North American cannabis market. In Canada, extracts accounted for about 60 percent of all cannabis sales, as of the third quarter of last year (the latest data available). In the U.S., cannabis extracts have become increasingly popular in California, Nevada, and other markets where consumers are looking for alternatives to smoking cannabis.
Quadron Cannatech Corp. (CSE: QCC) is a Vancouver-based provider of equipment, products and service solutions for the authorized cannabis industry, providing a full array of end-to-end extraction and processing solutions, including sales of end user delivery options (such as vapor pens) for medical and recreational consumers. With a growing product portfolio, the company is uniquely positioned to capitalize on this growing demand over the coming years.
Growing Market for Extracts
Canada’s cannabis industry is projected to reach C$22.6 billion over the coming years, according to Deloitte, driven by the legalization of recreational cannabis use this summer. While cannabis flower characterized the market in the early years, cannabis extracts have become increasingly popular and eclipsed cannabis flower sales this year. These products are commonly used in vaporizers or edible products that may be more accessible to consumers.
According to Health Canada, cannabis extract sales rose from about 50 percent of total cannabis sales in the first quarter to about 60 percent of sales by the third quarter of last year (the latest data available). Cannabis oil inventories were also much thinner than cannabis flower – 11,140 kg versus 38,927 kg – which suggests that cannabis extract pricing could be more favorable and consumer demand may have been higher than expected.
Quadron provides turn key cannabis extraction equipment and processing solutions, as well as consumer products (such as vape pens), to licensed cannabis producers. Its flagship BOSS supercritical C02 extraction Continue Reading