CannaRoyalty Commends Health Canada’s Proposed Approach for the Regulation of Cannabis Products
Consumers, the Canadian cannabis market, and CannaRoyalty all poised to benefit from the inclusion of advanced and derivative products
Ottawa, Canada – November 23, 2017 – CannaRoyalty Corp. (CSE: CRZ) (OTCQX: CNNRF) (“CannaRoyalty” or the “Company”), today commented on Health Canada’s Proposed Approach to the Regulation of Cannabis (the “Proposed Regulations”), which was released to the public on November 22, 2017. The Proposed Regulations contemplate a variety of cannabis product forms not currently allowable under the Access to Cannabis for Medical Purposes Regulations (the “ACMPR”), including edible products containing cannabis (like food or beverages), pre-rolls, and cannabis concentrates- including vaporizing solutions. The Proposed Regulations suggest these product forms are to be permitted after one year of the proposed Cannabis Act coming into effect, which is expected on or before July 1st, 2018.
The Proposed Regulations provide a platform for CannaRoyalty to commercialize its products, brands, intellectual property, and know-how into the growing Canadian market. CannaRoyalty’s product portfolio includes owned and licensed intellectual property in a variety of product categories, including:
- Edibles (wholly owned brand – Soul Sugar Kitchen™);
- Pre-roll technologies (exclusive Canadian license – Wagner Dimas);
- Topicals and skin creams (wholly owned brand – DermaLeaf™ skin care; out-licensing rights – MüV topical/cream products);
- Vape technologies (wholly owned brands – GreenRock Botanicals™, The Terpistry™, and The Rocket;
- Animal health products (wholly owned brand – Best Buds™);
- Female intimacy oils (wholly owned brand – Freya™ Intimacy Oil); and
- Other medical and adult-use focused products such as transdermal patches, metered dose inhalers, and various concentrate products.
“We applaud Health Canada for its progressive stance toward the evolution of the legal cannabis market in Canada,” said Marc Lustig, CEO of CannaRoyalty. “It has long been our expectation that Canada would look to more advanced legal cannabis markets in the U.S. to frame its policy. The contemplated inclusion of more progressive product forms, such as edibles and concentrates, is very positive news for consumers, the overall cannabis market, and for CannaRoyalty. Since inception, we have focused on advanced U.S. jurisdictions, such as California, to build an experienced team and a diversified product and brand portfolio. We are very excited about the opportunity to bring this knowledge base and advanced product suite back to Canada.”
CannaRoyalty has acquired and developed intellectual property for several product delivery systems as well as product manufacturing capabilities. The Company’s product portfolio has been developed primarily in the California market, which is the largest and most mature, legal cannabis market in the world.(1) CannaRoyalty has leveraged this experience to discern consumer preferences, and preferred delivery methods, in a safe, consistent and commercially viable way. In mature commercial cannabis markets such as Colorado, Washington, and Oregon, dried flower composes approximately 50% all sales. The other 50% is composed of alternative product forms including pre-rolls, edibles, and concentrate cannabis products,(2) supporting the need in Canada for advanced and derivative products such as the those in CannaRoyalty’s portfolio.
- According to New Frontier Data, California has the world’s largest cannabis market with annual sales in 2016 of $2.8 billion
- Arcview Market Research Report (in partnership with: BDS Analytics) “The State of Legal Marijuana Markets” 5th Edition, 2016
CannaRoyalty is an active investor and operator in the legal cannabis sector. Our focus is building and supporting a diversified portfolio of growth-ready assets in high-value segments of the cannabis sector, including research, consumer brands, devices and intellectual property. Our management team combines a hands-on understanding of the cannabis industry with seasoned financial know-how, assembling a platform of holdings via royalty agreements, equity interests, secured convertible debt, licensing agreements and its own branded portfolio.
For further inquiries, please contact:
Marc Lustig, CEO
Jonathan Ross, CFA
LodeRock Advisors Inc.