CBD products are some of the most sought after in the post-legalization market. However, due to the shortage of these products and high price point, they aren’t widely available in Canada today.
Biome Grow, a Canadian cannabis company, has plans to change that.
The business announced a deal with CBD Acres for 20,000 annual kilograms of low-cost CBD extract. The secret to the promised price tag is hemp.
Khurram Malik, CEO of Biome Grow, says recent changes to the country’s regulations on hemp have allowed for CBD to be extracted from low-cost hemp grows, instead of only from the cannabis plant.
“We can finally produce a made-in-Canada product which is cost competitive with the rest of the world,” says Malik. “We could never do [that] on the cannabis side.”
According to Malik, Biome Grow will soon be able to produce inexpensive CBD at “crazy large volumes.” This will be thanks to the ability make hemp-derived CBD products. He says producing cannabis-derived CBD is much more difficult and expensive than this method, due to the tight regulations of the Cannabis Act.
“The costs are very different because the regulations for hemp are much easier to work under, he says. “With the Cannabis Act, the regulations are very, very, very difficult to work with, and the standards are so high.”
Biome expects to bring their hemp-grown CBD products to the medical and recreational markets by the end of this year. The company also plans to sell hemp for protein in cereal bars and similar edible products. When cannabis edibles are legalized in Phase 2 of recreational legalization, Malik says the company will splash in additional ingredients to these products such as CBD.
Malik is optimistic about the company’s success and reach.
“We should have more CBD available by last this year or early next year than any other supplier in Canada,” says Malik. “Or quite frankly, any supply in North America.”
Malik thinks Biome will end up selling more CBD than THC in the long run. With medical cannabis becoming legalized globally, he foresees selling the products both in Canada and internationally.