With U.S. industrial hemp operations now legalized after the signing of the Agricultural Improvement Bill late last year, Canadian licensed cannabis producers are increasingly looking towards the booming U.S. CBD market.
One such company is CannTrust Holdings Inc. (TSX: TRST; NYSE: CTST), which today announced plans to create a 50 / 50 joint venture in California with Elk Grove Farming Company, LLC.
CannTrust just signed a non-binding letter of intent to form the joint venture and access farmable land in California for hemp production in excess of 3,000+ acres.
Under the terms of the proposed venture, Elk Grove Farming will provide large quantities of hemp biomass, which CannTrust will then convert into CBD oil at scale for a variety of products to be distributed across the U.S.
Peter Aceto, CEO of CannTrust, issued this statement regarding the new international partnership:
While the specifics of what CBD offerings will be released through the joint venture haven’t been revealed yet, CannTrust indicated the company will use existing proprietary product knowledge, which indicates at least one product will likely be a beverage pod.
Products developed through the partnership are expected to be shipped out and sold starting in 2020 after cultivation and processing begin.
Gummies, vaporizer oils, and pre-dosed capsules currently dominate U.S.-based CBD sales and can be found in vape shops, gas stations, and pharmacies around the nation.
CannTrust already has experience in offering up capsule and oil-based products in differing CBD to THC ratios, and recently launched three new pre-dosed cannabis products after receiving a processing license amendment from Health Canada.
Back on the Canadian side of operations, CannTrust also just launched the We Care initiative earlier this month at the Lift & Co. Cannabis Business Conference. By partnering with non-profit and charity organizations, that initiative seeks to drive social change in North America focused on sustainable cannabis growth, promoting health, increased cannabis awareness, and reducing poverty.
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