Canada took one more crucial step toward cannabis legalization in recent weeks. Health Canada released a proposed regulatory approach for the forthcoming Cannabis Act. The announcement was outlined by Minister of Health Ginette Petitpas.
“Our Government is taking a public health approach to legalizing, strictly regulating and restricting access to cannabis,” Minister Petitpas said in the ministry’s press release. “This proposed regulatory approach is informed by the extensive consultations to date, and it supports our overarching goal of protecting public health and safety.”
The Liberal Canadian government detailed their potential rules and regulations in a paper called “Proposed Approach to the Regulation of Cannabis.” While there were many important implications based upon the proposed regulations, one of the winners from the outline was Radient Technologies (RTI:CA). Under the proposed guidelines, a “Licensed Processor” class would be established to permit extraction, manufacture and package cannabis derivatives like cannabinoids or CBD oils. Maintaining a permit in this class would require testing for microbial and chemical contaminants, analytical testing and detailed quality assurance compliance, which Minsiter Petitpas alluded to in her statement by saying that health and safety were going to be of the utmost priority.
Now, this level of testing and regulation might be daunting and time-consuming for some CBD oil startups, but this is a huge win for Radient who already has set the highest standard for patient safety and purity standards.
Radient is Well Prepared for the Start of the Cannabis Act
Radient’s 20,000 square-foot Edmonton plant is already GMP-approved and well positioned to immediately take center stage as a leader in the extraction market, which is predicted to soar beyond $20 billion by 2020.
Moreover, the suggested proposals also allow for extraction of CBD oils from hemp, which Radient and partner, Aurora Cannabis (ACB:CA)(ACBFF), have a significant lead on because of the latter’s investment in Hempco Food and Fiber, a premier innovator in hemp seed foods and nutraceuticals. Yet, the real advantage stems from Radient’s MAP™ extraction platform (Microwave Assisted Processing), which has proven to be truly superior and unique to the industry.
Compared to conventional extraction methods that involve soaking, washing or contacting the solid material with hot solvent to extract the target compounds, Radient uses microwave energy to selectively heat moisture present in all-natural materials, which results in a rapid buildup of pressure within cells leading to a pressure-driven enhanced mass transfer of target compounds out of the source material.
As evidence, the company’s extraction technology has demonstrated 98% extraction efficiency for cannabinoids from dried cannabis in a joint test with Aurora conducted in June of this year. In that same joint study, the MAP platform showed processing times of five minutes compared to approximately six hours for currently used commercial technologies, and throughput over 1,500kg/day. Their advanced, proprietary extraction carves out market share for the company and represents the next chapter in turning cannabinoids to pharmaceuticals.
“Within the Proposals we see validation of Radient’s business model, its partnership with Aurora, and the potential to be a clear leader in a high-value segment of the cannabis supply chain, domestically and internationally,” said Mike Cabigon, Director and Chief Operating Officer of Radient. “Moreover, we are proud to be a participant in Canada’s cannabis landscape, which is rapidly progressing as an example to the world in terms of governance, growth, and the elimination of the black market.”
A Grounbreaking Partnership for Canadian Cannabis
With a commercial-scale extraction platform that can maintain high purity profiles for patient safety, game-changing yield quotients and produce quantities in excess of 1,500kg per day, Radient and their Edmonton facility could be at the center of cannabis extraction in Canada.
Aurora has known the value in Radient’s technology for some time and the partnership has truly been a win-win for both parties. The two just recently signed a master service agreement for both cannabis and hemp extraction, where Aurora has the option to further increase its stake in Radient.
“This agreement brings together the industry’s most technologically advanced cultivation facility, Aurora Sky, with the industry’s most advanced extraction platform, Radient’s MAP™,” Denis Taschuk, CEO of Radient stated in the company press release in early November. “With a shared commitment to world-leading quality assurance and the development of innovative products, we are excited about the benefits this partnership will bring to our respective stakeholders.”
The service agreement with Aurora is a milestone for Radient and could mean serious revenues for the company in the near future as Aurora Sky ramps up next year. In addition, Radient applied for a controlled substance dealer’s license with Health Canada for its manufacturing facility. The license would be in addition to the production license application under the ACMPR for the manufacturing facility (filed in Q4 2017) and the application for a controlled substance dealer’s license for the laboratory (filed in Q3 2017).
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