Studying CBD
No Result
View All Result
  • Home
  • CBD
  • About CBD
  • What is CBD
  • Home
  • CBD
  • About CBD
  • What is CBD
No Result
View All Result
Studying CBD
No Result
View All Result
Home What is CBD

Vape product concerns weigh on Canadian cannabis companies looking for sales boost

Peter F. by Peter F.
September 30, 2019
in What is CBD
38 2
0
Vape product concerns weigh on Canadian cannabis companies looking for sales boost
32
SHARES
360
VIEWS
Share on TwitterShare on Facebook

[ad_1]

A U.S. recommendation that consumers avoid vaping products containing the active ingredient in marijuana ahead of their legalization in Canada next month could be a blow to Canadian cannabis companies’ hopes that the higher-margin products will help propel them to profitability.

The U.S. Centres for Disease Control and Prevention (CDC) said Friday that an investigation into 805 confirmed or probable cases of vaping-related respiratory illnesses suggested that products containing THC, the psychoactive element in cannabis, likely played a role.

The heightened health concerns come at a time when Canadian cannabis companies, whose share prices have tumbled over disappointing sales and supply and quality hiccups, are investing millions of dollars into marijuana derivatives, including vape products.

Vapes are among a series of new products — including edibles, beverages and extracts — that will be for sale legally in Canada in mid-December.

While keeping a wary eye on U.S. developments, cannabis companies are betting that already-strict Canadian regulations will ensure the safety of their products.

The Horizons Marijuana Life Sciences Index ETF has dropped 54 per cent since its peak last year on Oct. 16, the day before adult recreational use of cannabis flower and THC and CBD oils were legalized. CBD does not contain the compound that gets people high.

The vaping concerns have contributed to recent declines and will continue to hurt shares, said Bruce Campbell, portfolio manager at Stonecastle Investment Management, which invests in cannabis stocks.

“It’s a case of ‘shoot first, ask questions later,'” he said. “[Investors] probably do some quick back-of-the-envelope math and say, ‘We’re not going to see the sales we expected, so we’re out.'”

RELATED  CBD producer looking to settle in Reynolds | News

Analysts estimate that in some established U.S. markets, vape sales are down as much as 30 per cent, with many marijuana consumers reverting to use of less profitable flower and oil products.

, Vape product concerns weigh on Canadian cannabis companies looking for sales boost, Styding CBD, Styding CBD
Vape pods containing CBD are on display at the Cannabis World Congress and Business Exposition in Los Angeles on Sept. 26, 2019. (Mike Blake/Reuters)

While a shift away from Canada’s illicit cannabis vape market into legal dried flower is positive from a public health standpoint, prolonged uncertainty could hurt legal vape sales.

“These illnesses … occurred using non-regulated products,” said Jason Zandberg, research analyst at investment dealer PI Financial.

Investigators have pointed to vaping products containing THC or vitamin E acetate, a thickening agent often mixed with THC oil in the illicit market, as possible causes of the rash of serious lung problems.

“In theory, it should promote the legal market,” Zandberg said. “But if you don’t have very aggressive education behind these products, a good portion of the population doesn’t see the difference.”

Health Canada monitoring the situation

The regulations that take effect on Oct. 17 take into account the emerging health risks associated with cannabis vaping. They prohibit additives including vitamins and colouring agents, Health Canada, which regulates cannabis producers, said in an email.

The health agency added that it is monitoring the situation and will take additional action if needed.

“The Canadian government should come out as soon as possible one way or other and either double down on vape products or remove them from the derivatives market. You have to give the industry clarity,” said Brett Hundley, a cannabis analyst at Seaport Global.

If the government suddenly removes vape products from the roster of expanded legal cannabis offerings, including edibles and extracts, “that’s going to reverberate back through the supply chain and it’s going to lead to a whole host of near-term issues” for these companies, Hundley said.

Cannabis companies trust that adhering to Health Canada’s rules will provide reassurance for investors and consumers.

A spokesperson for Canopy Growth Corp, Canada’s biggest cannabis producer pointed to the importance of the regulatory frameworks for cannabis vape products that Canada has in place.

Hexo Corp, another Canadian company with a variety of cannabis products, said it is focused on ensuring it is compliant with Health Canada’s regulations. Hexo is double testing its vape products, James McMillan, vice president of business development, said in a phone interview.

[ad_2]

Source link

Tweet8Share13Share3Share
Peter F.

Peter F.

We study the effects of cannabidiol (CBD), a non-psychoactive component of cannabis that does not produce the high associated with smoking or using it."There is a lot of debate on the health effects of marijuana and the use of cannabinoids, which are a group of compounds found in marijuana that have anti-inflammatory, pain-relieving, anti-nausea and anti-emetic properties. However, there is a lack of solid scientific evidence to guide us in the application of cannabis therapeutics."

No Result
View All Result
  • Privacy Policy
  • Contact
  • About us

Login to your account below

Forgotten Password?

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
We use cookies to personalize content and ads, to provide social media features and to analyze our traffic. We also share information about your use of our site with our social media, advertising and analytics partners who may combine it with other information that you’ve provided to them or that they’ve collected from your use of their services. You consent to our cookies if you continue to use our website.. For more information contact Info@sdmediagrp.comContinuePrivacy policy