AgraFlora Organics International Inc. announced its wholly owned subsidiary Sustainable Growth Strategic Capital Corp., a federally licensed cannabis company based in the Greater Toronto Area has successfully produced the first full run of full spectrum winterized CBD crude oil (“CBD Oil”) and CBD distillate.
SGSC is focused on taking advantage of the underserviced market for CBD Oil, CBD Distillate and CBD Isolate by crafting partnerships to generate revenue while limiting fiscal and operational risk. SGSC has previously partnered with Micro C45 Inc. (“MC45”), a Canadian company that has developed a unique post-harvest mechanical separation process for hemp that results in higher extraction value. Under this partnership, SGSC has entered into agreements with multiple Canadian companies licensed under the Cannabis Act to create formulations and finished products with CBD Oil, CBD Distillate and CBD Isolate from high-quality Canadian grown hemp, sourced and processed by MC45. Recently, SGSC completed the first batches of CBD Oil and CBD Distillate which are in the final stages of being prepared for sale. SGSC expects to have its first batch of CBD Isolate completed in the second quarter of 2020.
“After seeking approval for many formulations, LPs have struggled to identify reliable and consistent sources of CBD derivatives to meet their formulation and manufacturing requirements for those edible, oil, topical, tincture and beverage products,” stated Brandon Boddy, AgraFlora Executive Chairman and CEO. “Our strategy with SGSC is to meet that demand with high quality CBD inputs processed from Canadian hemp utilizing our strong relationships in the Canadian hemp and CBD space. This model allows us and our partner to focus on sourcing the highest quality hemp and to pursue strong relationships with down-stream buyers.”
SGSC expects to utilize up to 225,000 kg of Canadian hemp from MC45 in calendar 2020. The Company anticipates that the processing of the committed hemp will generate up to 12,500 kg of Distillate or up to 10,000 kg of CBD isolate, or some combination thereof to be determined by the Company based on market demand.
