Canada Could See Shortage of Cannabis Extracts --

SEATTLE, WA--(Marketwired - Aug 1, 2017) - CFN Media Group ("CannabisFN"), the leading creative agency and digital media network dedicated to legal cannabis, announces the publication of an article discussing growing demand for extracts in the Canadian cannabis industry and Emerald Health Therapeutics Inc.'s ( TSX VENTURE : EMH ) ( OTCQX : EMHTF ) plan to address it.

The Canadian cannabis industry began with dried cannabis flower only, but a Supreme Court ruling found that patients shouldn't be restricted to dried marijuana. After all, many doctors would be hesitant to prescribe smoking dried cannabis as a treatment option compared to capsules, liquids and gels containing cannabis oils. These sentiments turned out to be correct as cannabis oils have experienced tremendous growth relative to dried cannabis.

Soaring Cannabis Extract Demand Demand for cannabis oils has risen more than 278% over the past year, according to Health Canada , compared to just 45% for dried cannabis. The regulatory agency also reported a 123% increase in registered patients, which may have resulted from the demand for cannabis oils. Research published in the International Journal of Drug Policy has shown a clear preference among medical marijuana patients for vaporizable or edible products over smoking.

Many licensed producers have expressed concerns over the market's ability to meet consumer demand, particularly with adult-use legalization on the horizon. According to Canabo Medical Inc.'s latest quarterly report : "The Canadian market is currently experiencing a shortage of Cannabis based oils. Many licensed producers did not anticipate the uptake in demand for Medical Marijuana and are facing difficulties providing a consistent supply of product. As a result many patients are finding an alternate source of product and leaving Canabo's research program. The company is not able to fully optimize our business plan in this environment until the supply issues are resolved in the coming months."

Health Canada responded to these concerns by noting the demand has been steadily increasing and patients have been growing at a rate of about 10% per month. With a new streamlined licensing process, the organization hopes to ensure reasonable access for individuals who require cannabis for medicinal purposes. But notably, the organization omitted any references to the adult-use market set to go into effect next year.

Emerald Health Looks to Capitalize Emerald Health Therapeutics recently announced plans to expand its production capacity while focusing its efforts on the booming cannabis extracts market by validating its products with rigorous studies.

Currently, the company is undergoing two expansion initiatives designed to increase overall production capacity to well over a million sq. ft. of cultivation space that yields more than 80,000 kilograms of dried cannabis flower each year. This high-quality, low-cost cannabis flower will provide the backbone for all of the company's medical and adult-use endeavors, including its ambitions to become a leader in cannabis extracts and other high margin products.

The company plans to focus its efforts on extracts, which are expected to become a large part of the adult-use market. Rather than simple extraction, the company is investing in pharmaceutical-quality formulations that provide medical and non-medical users with predictable and consistent dosing. The goal is to become a recognized and valuable medical brand in Canada while eventually pursuing international opportunities.

In terms of distribution, the company plans to supply both branded and wholesale cannabis products. Management has already developed a nationwide mail order system with an excellent customer support record. And, the team is prepared to explore multi-channel distribution models to fully support the eminent production position with its internal and joint venture expansion opportunities, as well as its product development initiatives.

Partnering to Advance Cannabis Science Emerald Health differentiates itself from competitors with its strong focus on research and development. With support from the Canada's National Research Council, the company has characterized a rich collection of strains from its extensive genomic library and continues its effort in strain development. The goal is to identify strains, based on their cannabinoid and terpene profiles, that provide optimal benefits for various end users -- including medical patients and recreational users.

The company was one of the first licensed producers to provide THCA cannabis oils, which may provide the analgesic effects of THC without the psychoactivity. In addition, the company has identified high CBD strains and provides the highest potency CBD oils in the country, which is important since CBD has been widely associated with displaying medical benefits without being psychoactive. The ongoing focus on optimizing strains could set its products apart from the competition.

Recently, the company also announced the formation of an Advisory Board that will provide strategic guidance to the company as it continues product and market development, pushes forward in developing pharmaceutical formulations, and conducts observational studies and clinical trials. The team has already started research through data collection from patients using cannabis oils and plans to commence clinical trials later this year.

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About CFN Media CFN Media (CannabisFN) is the leading creative agency and media network dedicated to legal cannabis. We help marijuana businesses attract investors, customers (B2B, B2C), capital, and media visibility. Private and public marijuana companies and brands in the US and Canada rely on CFN Media to grow and succeed.

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