Dec 05, 2019 (Financial News Media via COMTEX) -- FN Media Group Presents Microsmallcap.com Market Commentary
New York, NY - December 05, 2019 – While several headlines have cropped up in the last few months about the dangers of vaping, that hasn't stopped the cannabis sector from pressing ahead on developing new vape products in the lead-up to the December 16 [th] sales launch date in Canada. Why? It's because the US CDC concluded that the "chemical of concern" is only found in vapes from the black market. Legally-approved and regulated producers and sellers that include Namaste Technologies Inc. (otcqb:NXTTF) /zigman2/quotes/206380672/delayed CA:N -1.61% , Cronos Group /zigman2/quotes/206842762/composite CRON -1.41% , The Supreme Cannabis Company (otcqx:SPRWF) /zigman2/quotes/209645734/delayed CA:FIRE 0.00% , Fire & Flower Holdings Corp. (otcpk:FFLWF) /zigman2/quotes/213611721/delayed CA:FAF -0.99% and Aphria Inc. /zigman2/quotes/207425803/composite APHA -1.64% /zigman2/quotes/205566616/delayed CA:APHA -1.54% will be selling safe and legal vape cartridges that are welcomed by the US$19 billion global e-cigarettes and vape market.
With several new products set to launch all at once as the Canadian Cannabis 2.0 green light is given, it's specifically retailers such as Namaste Technologies Inc.(OTCQB:NXTTF) (TSX.V:N) that stand to benefit first and foremost. With its popular online store CannMart.com, Namaste is set to capitalize all at once as consumers settle in and decide their brand loyalties after giving each new cannabis product a test spin.
Known as leading the largest global e-commerce pot platform in the world, CannMart already carries leaf, oils, accessories, and vaporizers (without cannabis). Namaste Technologies sells its wide range of wares on 24 unique websites, 5 warehouses in 20 countries, under a variety of brands including Supreme, GTEC, CannTx plus the leading recognized brand PAX devices--a spinoff from the innovative vape giant JUUL.
PAX has, to-date, limited its cannabis licensed partnerships to only 4 companies, including premium-cannabis cultivator The Supreme Cannabis Company (otcqx:SPRWF) /zigman2/quotes/209645734/delayed CA:FIRE 0.00% and Aphria Inc. /zigman2/quotes/207425803/composite APHA -1.64% /zigman2/quotes/205566616/delayed CA:APHA -1.54% whose recently-licensed Diamond facility is set to go into full capacity production soon.
Having received a $1 billion investment from Altria, Cronos Group /zigman2/quotes/206842762/composite CRON -1.41% also has been public about its plans to get into the vape business--something its original businesses in Israel have been working on for the past 6 years.
Once the December 16 [th] launch date hits, expect online vendors such as Namaste Technologies Inc. (NXTTF - N.V) and brick-and-mortar retailers Fire & Flower Holdings Corp. (otcmkts:FFLWF)(tsx.v:FAF) with their 33 currently operating dispensaries to waste no time in getting these new products in front of their customers.
The incentive is there.
Consulting firm Deloitte estimates that the Canadian market for edibles and alternative cannabis products is set to be worth up to C$2.7 billion annually.
Canada's Growing Vape Optimism in the Wake of Recent Fears
On the surface, the fears over vaping are substantiated, with 47 people dying in the US, and over 2,000 others suffering from lung illnesses contracted from using cannabis-infused vapes sourced from the illicit market.
However, in Canada, things are going to be significantly different. Health Canada has already said it's actively monitoring the US's vaping illness situation and has taken safety precautions to prevent similar outbreaks in Canada. Specifically, the regulator has banned any and all use of the vitamin E acetate additive that's been discovered to coat the insides of lungs like grease.
“These [cannabis] extracts are not permitted to contain anything other than carrier substances, flavoring agents, and substances that are necessary to maintain the quality or stability of the product,” a Health Canada spokesperson wrote in an email to BNN Bloomberg.
While vitamin E is safe as a vitamin pill or to use on skin, inhaling oily droplets is seen to be harmful. Nevertheless, consumers in Canada can be confident that this form of illness should be preventable in Canada.
Gearing Up for Cannabis 2.0 Sales Boosts
With the official launch date of cannabis 2.0 products set for mid-December, expectations are still quite high. It's estimated that products made from derivatives, including vapes, oils, and edibles are expected to add an additional 3 million consumers in the Canadian market alone.
But it's the opening up of so many markets around the world that is increasing the sheer amount of data we have for the cannabis sector as a whole.