- AgraFlora Organics International’s (CSE:AGRA) subsidiary has successfully brought it’s CBD oils and distillate to market
- Sustainable Growth Strategic Capital Corp (SGSC) is Agra Flora’s wholly owned subsidiary
- SGSC has expansion plans, including introducing a line of CBD isolates
- The company hopes to fill the void for cannabis companies producing edibles and other products that need CBD oils and distillates for production
- AgraFlora Organics International (AGRA) is trading at 4.5 cents per share, with a market cap of $38 million
AgraFlora Organics International (CSE:AGRA) has announced the release of its first run of full spectrum winterised CBD crude oil and CBD distillate.
The product was produced by AgraFlora’s wholly owned subsidiary, Sustainable Growth Strategic Capital Corp (SGSC).
SGSC has focused on developing the CBD oils by crafting partnerships to generate revenue while limiting fiscal and operational risks.
Previously, SGSC has worked with Micro C45, a Canadian company that developed a unique post-harvest mechanical operation process for hemp that results in higher extraction values for CBD oils. Using that knowledge, SGSC has entered into agreements with multiple other Canadian cannabis companies to create formulations and finished products with CBD oil, distillates and isolates.
Those products have now made it to market for the first time, and the first batch of CBD isolates is expected to be ready by the second quarter of 2020.
CEO of AgraFlora, Brandon Boddy, said the company had been seeking approval for various formulations, and licensed providers had struggled to identify reliable sources of CBD derivatives to meet their formulation requirements for edibles, oils, topical creams and beverage products, a market niche that SGSC could well fill.
“Our strategy with SGSC is to meet that demand with high quality CBD inputs processed from Canadian hemp, utilising 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,” he said,
SGSC has said it expects to utilise up to 225,000 kilograms of Canadian grown hemp from MC45 in the calendar year of 2020. The company believes processing this hemp will return 12,500 kilograms of distillate or up to 10,000 kilograms of CBD isolate, or some combination thereof to be determined by the company based on market demand.
AgraFlora Organics International (AGRA) is trading at 4.5 cents per share, as of 2:19pm EST.