The cannabis industry is going through a rough patch with the leading companies experiencing huge losses, which generated skepticism about the profitability of the sector in general. That’s just a temporary situation, as the market rebound is likely coming soon. In Canada, Sire Biosciences (CSE:SIRE) is expanding its manufacturing facility, while in the US Veritas Farms Inc. (OTC:VFRM) is making waves with huge revenues from the last quarter.
The main activity of Sire Bioscience Inc (CSE:SIRE) is investment, production and sale of hemp. The company specialises in brand offerings that connect people and benefit from high consumer awareness.
Headquartered in Toronto, Ontario, Sire is supported by a group of successful entrepreneurs with extensive experience in manufacturing, logistics and renewable energy. The company has just announced that construction on its 50 acres Leamington concession in the Canadian province of Ontario has started.
The first phase will include the construction of a 7,000 square foot greenhouse, including 2,000 square foot of arable land, safety facilities and ancillary space. This phase will also see the construction of a 2,900-foot fence, which is expected to begin on December 9, 2019. The secured inner storage facility will also support Sire’s planned outdoor cultivation initiative.
Once the construction of the indoor and outdoor facilities is complete, SIRE will apply to Health Canada for a license to grow cannabis both in greenhouses and outdoors. The company will also plant high-CBD-yielding strains of hemp on the remaining land in order to use the license already acquired for industrial hemp. In the upcoming year, the company intends to start growing hemp both in greenhouses and in the field.
The CBD sector stands out in a bleak cannabis landscape
There are no signs of decline in consumer demand for cannabis. Analysts estimated that legal cannabis sales could grow in Canada from around $570 million in 2018 to $4.7 billion by 2023, while sales of CBD in North America alone are predicted to be worth $24 billion by 2023. The CBD sector already started to take off and is likely to completely overshadow the cannabis market, thanks to friendlier legislation and growing recognition of the benefits of CBD.
Consequently, CBD producers have seen their products adopted by mainstream retail chains, especially companies that focus on the quality of their CBD-based products and that offer full transparency. One such company is US-based Veritas Farms Inc. (OTC:VFRM), a vertically integrated agribusiness that has its own 140 acres state-of-the-art industrial hemp farm and facility.
Veritas maintains complete control over the manufacturing process, from plant growing to product packaging. The company currently produces nine categories of full-spectrum hemp oil products, such as lotions, tincture, lip-balms and vegan capsules, and offers QR codes linking to verifiable Certificates of Analysis from a third-party scientific testing laboratory which validate the high quality of Veritas’ CBD products.
Veritas Farms CBD-based products are showcased in more than 4,800 brick-and-mortar stores and in multiple online marketplaces. The relentless focus on transparency and honesty has paid off, and Veritas just sealed a few ground-breaking partnerships with Winn Dixie, Bi-Lo and Bi-Mart supermarkets.
While the troubles seem to have set in the cannabis industry as a whole, the CBD sector is on the right track, thanks to broad acceptance of the benefits cannabidiol has on human health.