Taking advantage of the sudden explosion of CBD product popularity, Organigram Holdings Inc. (TSX V: OGI; NASDAQ: OGI) just announced the shipment of 130,000 units of Edison-branded 25 ml CBD oil bottles.
Those oils, as well as future product shipments, are produced through agreements with 1812 Hemp and Valens GroWorks.
Organigram’s deal with the former company saw the acquisition of 6,000 kg of dried hemp in late 2018, which was then extracted into oil products earlier this year. That deal additionally sees Organigram gain a right of first refusal for hemp products produced by 1812 Hemp throughout the remaining calendar year.
The more recent deal with Valens was struck back in January. Through that extraction agreement, Organigram supplies trim and dried cannabis flowers from the company’s Moncton facility, which are then extracted into concentrates and oils.
Organigram’s Chief Executive Officer Greg Engel commented on the growing CBD market this morning, stating consumers are already aware of the product and its perceived benefits, and are actively looking for locations where the product is sold. Engel added:
Companies such as Valens GroWorks have stepped in to assist existing licensed producers in turning hemp and cannabis into extracts such as oils as consumers increasingly look for choices beyond just dried flower products.
Both Canopy Growth (TSX: WEED; NYSE: CGC) and MediPharm Labs Corp. (TSXV: LABS). signed multi-year extraction deals with Valens back in December of 2018. The Green Organic Dutchman Holdings (TSX: TGOD; US: TGODF) additionally signed an extraction deal with Valens in March to turn 80,000 kg of biomass from cannabis and hemp into a variety of distillates for capsules and oils.
In other recent Organigram Holdings news, the company also announced plans to enter the edible cannabis market through an investment into a chocolate processing facility. That $15 million investment went into an automated chocolate line expected to begin operating as edible regulations are set by Health Canada this coming October.