TORONTO, Dec. 19, 2018 /CNW/ - Canadian based company Instadose Pharma Corp. has become the largest cultivator and pharmaceutical producer of CBD oil.
Through international partnerships, Instadose's land under cannabis cultivation is over 100,000 hectares, producing CBD Oil that is GMP certified and pharma grade 99.7% CBD. The company has a production capacity of 2,000,000 litres per year and production cost, less then 5% of the Canadian industry average.
The company will release oil that is the highest quality in the world market at a price that devaluates the entire index in Q1 2019. What then will happen to all the licensed producers in this sector?
The main production facility is not only GMP certified but pharmaceutically accredited with EU Pharmacopeia standards. The leaders in the industry cannot produce the oil in any other regions at this price. Instadose Pharma Corp. is also located in Colombia, Argentina and Chile; however, the ideal cost of producing and growing cannabis in the Democratic Republic of the Congo makes South America non-competitive.
"This is a disruptive flow to the cannabis sector regarding oil production and prices. Our facilities and production will increase accordingly as the world market and prices dictate. We are selling our oil with off-take agreements worldwide including Canada, with the first release of 90,000 litres and are currently in discussions with major pharmaceutical companies such as Bayer. I have great concerns about the reaction of this news with licensed producers and the public investment sector." said Grant F Sanders, CEO, Instadose Pharma Corp
"The Canadian cannabis industry is being built in a bubble where the economics are a fallacy. Everything is based on supporting a cost base of $2800/kg for CBD oil. Meanwhile international forces outside of the bubble have already brought that cost down to $102.50. In the past month I have been in negotiations with pharma companies to take our production and bring it to market globally. Our first crops hit the markets only a few months from now. It's time for the market to take the blinders off and see that serious disruption is coming."
SOURCE Instadose Pharma Corp.
For further information: Safeer Qureshi, President, Liquid Communications, 416-825-4620, [email protected]