AgraFlora Organics International Inc. is pleased to announce its wholly owned subsidiary Sustainable Growth Strategic Capital Corp. (“SGSC”), a federally licensed cannabis company based in the Greater Toronto Area (“GTA”), in partnership with its biomass partner MicroC45, has generated an inventory of approximately 1,000 kg of CBD Crude Oil and Distillate (collectively “CBD Oil”), which it is readying for sale this quarter. The CBD oil was produced from approximately 10,000 kilograms of hemp biomass that was subject to the Company’s proprietary pre-extraction processes. The Company has retained an inventory of approximately 10,000 kilograms of additional hemp biomass ready for extraction and processing.
The Company is currently working to further refine the CBD Oil into CBD Isolate, with manufacturing expected to start this month. If the CBD Oil is converted fully into CBD Isolate, the Company forecasts it would have an inventory of over 850 kilograms of isolate. The Company is currently engaged in negotiations with potential buyers to determine the optimal sales mix of CBD Isolate, CBD Distillate and CBD Crude Oil and expects to close its first bulk transactions this quarter.
“It is our view that the CBD product market is still in the early days in Canada. We are well positioned to solve the short term supply issues of CBD ingredients such as CBD Isolate and CBD Distillate, which will help unlock growth in Canada’s CBD product market,” stated Brandon Boddy, AgraFlora Executive Chairman and CEO. “We’re also thrilled to see the efficiency that our partners have been able to harvest, process, extract and purify our hemp biomass. This points to our ability to maintain competitive pricing over time.”