You are here

Bloomberg Interviews FSD Pharma for Cannabis Shortage Feature -- CFN Media

SEATTLE, Oct. 30, 2018 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- CFN Media Group (“CFN Media”), the leading agency and financial media network dedicated to the North American cannabis industry, announces publication of an article discussing FSD Pharma Inc. (CSE: HUGE) (OTCQB: FSDDF) (FRA: 0K9) and the cannabis shortage following legalization. Bloomberg recently interviewed the company to address the cannabis shortage issue.

Canada may have legalized adult-use cannabis on October 17, but that doesn’t mean consumers are able to purchase the drug. According to Bloomberg, there are widespread shortages across the country, despite an ample supply of licensed producers awaiting approval from Health Canada. Many of these licensed producers have been waiting a year or more after completing all of the requirements to receive a license.

“We’re biting our nails and I think our shareholders are biting their nails, too,” said FSD Pharma Inc. Director Anthony Durkacz to Bloomberg. “We want to be supplying.”

There are just over 130 approved licensed producers (cultivators) across Canada, but only 78 of those companies are licensed to actually sell cannabis. With more than 600 applicants in various stages of review, there is significant pressure on Health Canada to work through its backlog and even out supply and demand. The agency has so far hired 300 additional staff members to help resolve the issue in a timely manner.

Unknown Demand Curve

Canopy Growth Corp. CEO Bruce Linton told Bloomberg that the core problem was an unknown demand curve. In the other words, nobody knew how much recreational demand there would be at the onset and everyone was caught off-guard. Canopy Growth shipped about one million grams of medical cannabis during its first four years, but the company expects to ship the same amount of adult-use cannabis in just four weeks.

Many provinces have struggled to receive the cannabis that they were promised by licensed producers under their supply agreements. Chara Goodings, a spokeswoman for the government regulator that’s overseeing sales in Alberta, told Bloomberg that “very few” licensed producers have been able to deliver what they agreed upon. Many have faced issues of their own, including a lack of qualified greenhouse workers.

While the short-term solution could involve some tough decisions, such as allowing legal retailers to sell products sourced from the black market, many investors in the 600+ applicants are hoping that the application process speeds up considerably to help meet demand in a completely legal fashion. Investors in existing licensed producers are also hoping that supply problems will be quickly resolved to avoid any disruption.

Targeting Multiple Markets

FSD Pharma is well positioned to become a leading producer of cannabis once it receives its sales license from Health Canada. With a former Kraft facility as its headquarters, the company already has 3.8 million sq. ft. of grow space that’s strategically located on 72 acres of land near Toronto. Auxly Cannabis Group’s $55 million capital infusion will also fund the development of a 220,000 sq. ft. space for cultivation and extraction.

Many licensed producers aim to capitalize on the burgeoning adult-use market, but others don’t see the near-term supply issues remaining forever. Medical cannabis will always be higher margin than adult-use cannabis because it involves a much stricter quality control process backed by strong research and development. Some licensed producers are taking a diversified approach to the market by targeting both adult-use and medical cannabis.

FSD Pharma recently announced a binding letter of intent to acquire Therapix Biosciences Ltd. to bolster its high-margin pharmaceutical business. In addition to the novel cannabinoids acquired through this transaction, the company has an agreement with Canntab Therapeutics Ltd. to provide 10,000 sq. ft. of space to produce its novel oral cannabinoid delivery platforms in exchange for a slice of the revenue.

Looking Ahead

FSD Pharma Inc. (CSE: HUGE) (OTCQB: FSDDF) (FRA: 0K9) represents a compelling investment opportunity within the cannabis industry. With the supply shortage in Canada, the company’s massive facility could capture a meaningful piece of the market once Health Canada approves its sales license. Investors should also keep an eye on its many joint ventures and partnerships within the medical space as a way to diversify.

For more information, visit the company’s website or download their investor presentation.

Please follow the link to read the full article: http://www.cannabisfn.com/bloomberg-interviews-fsd-pharma-cannabis-shortage-feature/

Disclaimer

The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/

About CFN Media

CFN Media (CannabisFN) is the leading agency and financial media network dedicated to the global cannabis industry, helps companies operating in the space attract investors, capital, and publicity. Since 2013, private and public cannabis companies in the US and Canada have relied on CFN Media to grow and succeed.

Learn how to become a CFN Media client company, brand or entrepreneur: http://www.cannabisfn.com/featuredcompany

Download the CFN Media iOS mobile app to access the world of cannabis from the palm of your hand: https://itunes.apple.com/us/app/cannabisfn/id988009247?ls=1&mt=8

Or visit our homepage and enter your mobile number under the Apple App Store logo to receive a download link text on your iPhone: http://www.cannabisfn.com

Disclaimer

CannabisFN.com is not an independent financial investment advisor or broker-dealer. You should always consult with your own independent legal, tax, and/or investment professionals before making any investment decisions. The information provided on http://www.cannabisfn.com (the ‘Site’) is either original financial news or paid advertisements drafted by our in-house team or provided by an affiliate. CannabisFN.com, a financial news media and marketing firm enters into media buys or service agreements with the companies that are the subject of the articles posted on the Site or other editorials for advertising such companies. We are not an independent news media provider. We make no warranty or representation about the information including its completeness, accuracy, truthfulness or reliability and we disclaim, expressly and implicitly, all warranties of any kind, including whether the Information is complete, accurate, truthful, or reliable. As such, your use of the information is at your own risk. Nor do we undertake any obligation to update the items posted. CannabisFN.com received compensation for producing and presenting high quality and sophisticated content on CannabisFN.com along with financial and corporate news.

The above article is sponsored content. Emerging Growth LLC, which owns CannabisFN.com and CFN Media, has been hired to create awareness. Please follow the link below to view our full disclosure outlining our compensation: http://www.cannabisfn.com/legal-disclaimer/

Frank Lane
206-369-7050
Flane@cannabisfn.com

Tuesday, October 30, 2018 - 08:30