logo-loader

Bedrocan Cannabis begins medical cannabis operations at GTA facility

Published: 01:27 12 Mar 2015 AEDT

toronto350_55005182f0e93

Bedrocan Cannabis (CVE:BED) says that its recently licensed medical marijuana facility in the GTA is now operational, propelling the company into its second phase of growth.

The company, which also has a separate license from Health Canada to import medical marijuana from the Dutch government's Office of Medicinal Cannabis, has successfully transferred live genetic clones of its medical cannabis strains from its Dutch partner Bedrocan BV to its domestic facility in the Greater Toronto Area (GTA).

This means production at the new site is grown from clones that are genetically identical to those developed by its Netherlands subsidiary. Bedrocan said it is now growing in the new facility's specially-designed grow rooms.

The use of genetically-identical clones is a key part of Bedrocan's standardization process, and includes a series of production techniques that provides patients with consistent levels of active ingredients in every batch.

"Bedrocan is the only company in the world capable of producing standardized full-bud medicinal cannabis and its alternate dispensed form, "Gran Flos", granulated full bud cannabis," the company said in a statement released earlier Wednesday.

Under the terms of its newest license, effective February 17 for a period of one year, Bedrocan can produce in the first six grow rooms at its new 52,000 square foot facility in the Greater Toronto Area. When fully licensed, the facility is capable of producing some 4,000 kilograms of medical cannabis per year. The site has a total of 34 grow rooms.

"The importation process went smoothly, our production technology is working flawlessly, and we're on track to harvest our first domestic crop for shipment to patients in Q2 2015," said president and chief executive officer, Marc Wayne.

Bedrocan recently established a patient advisory board and appointed one of the founders of Canada's first ever compassion club as director of patient and community services, reinforcing the company's strong commitment to patient care.

Analysts believe the move was part of the company's attempt to distance itself from the stigmas associated with marijuana, making a concerted effort to demonstrate that its product is a pharmaceutical-quality medicine aimed at helping patients in need, and not 'weekend warriors'.

Shares of Bedrocan rose 1.4 percent on Wednesday, to trade at 74 cents, still below its trading price before its medical marijuana producer's license was announced on February 20. Analysts at Dundee Capital Markets say the decline is driven largely by a misunderstanding of the granted licensed capacity, reminding that the initial license does not represent a capacity constraint. 

Bedrocan is likely to see an amendment to higher levels in the next 1 to 2 months, with Health Canada only licensing the company for enough capacity to get started. Management is anticipating an amendment to its license before annual renewal in February 2016.

Australian Strategic Materials signs US$600 million LoI

Rowena Smith, CEO and managing director of Australian Strategic Materials Ltd (ASX:ASM, OTC:ASMMF), joins Jonathan Jackson in the Proactive studio to discuss the company’ s Dubbo Project, in Central West New South Wales. This project aims to extract and process critical minerals and rare earth...

8 hours, 43 minutes ago