Organigram Holdings Inc., the parent company of Organigram Inc., has entered into an agreement with 1812 Hemp to secure supply and support research and development on the genetic improvement of hemp through traditional plant breeding methods.
As per the agreement, “Organigram will have access to a secure supply of hemp flower that contains significant levels of cannabidiol (CBD cultivars ranging from four percent to eight percent),” notes a press release issued by OrganiGram, a licensed producer of cannabis based in New Brunswick that is focused on producing the highest-quality, indoor-grown cannabis for patients and adult recreational consumers in Canada, as well as developing international business partnerships to extend its global footprint.
Organigram had access to approximately 6,000 kg of dried hemp flower harvested in the fall of 2018, which the company intends to purchase and begin to send for extraction within the first quarter of 2019, the statement reports. Additionally, the company “has a right-of-first refusal on future procurement of hemp from 1812 Hemp, which is expected to increase significantly in 2019 and beyond,” it adds.
“CBD is a naturally occurring active ingredient in hemp and cannabis that is currently being studied for various therapeutic uses,” Organigram reports. For its part, industry hemp research company 1812 Hemp “is focused on further developing a line of Canadian cultivars—specific varieties of plants cultivated to enhance desirable qualities—of high CBD-yielding hemp for the Canadian climate,” the statement notes.
“The recent legalization of cannabis in Canada has meant an increased need for agriculture technologies and plant breeding research to support both the indoor and outdoor growing of cannabis and industrial hemp,” it adds.
“Maximizing the CBD yield of hemp and cannabis means being able to meet increasing consumer demand for CBD while reducing overall production costs,” comments Organigram CEO Greg Engel.
“We see the future CBD market in Canada and beyond to be an incredible opportunity,” Engel says. “CBD infused products will only grow in both medical and adult recreational channels, and we are focused on establishing the right relationships and processes now to fully take advantage of that opportunity.”
(Rights of the text go to 420intel.com . Image is from shutterstock)