Biome gains preferential access to cannabidiol from CBD Acres

By Murielle Gonzalez | Published: 22-Feb-2019

Agreement with the industrial hemp grower gives the Canadian cannabis conglomerate access to up to 20,000 kg per year of hemp-based CBD extract

Canadian cannabis conglomerate Biome Grow has signed a Memorandum of Understanding (MoU) with CBD Acres Manufacturer Inc. The agreement gives Biome preferential access to a high-quality and low-cost supply of cannabidiol.

The MoU is for a period of five years pursuant to which Biome may acquire up to 20,000 kilograms per year of sun-grown, hemp-based CBD extract from CBD Acres. The company uses a unique nano lipid, solventless extraction process.

Commenting on the news, Mark Gobuty, Chief Executive Officer, CBD Acres, said: “CBD Acres is thrilled to have the visibility of a long-term partner for its bulk products business entering the market in the second half of 2019, and more importantly a strategic partner focused on commercialisation in key medical-CBD markets, allowing CBD Acres to focus on growing and extraction innovation as well as its consumer products business."

CBD Acres is currently working with 4,500 acres of hemp farmland in Canada, including 1,000 acres of organic grow, which the company expects to produce volumes that are equivalent to a 180 million square foot indoor cannabis production facility under the Canadian Cannabis Act.

Growing demand

The news comes at a time of rapid development in the cannabis market. Cultivators and suppliers alike are trying hard to meet the demands of consumers.

In a move to tap into the business potential of the market, companies are securing contracts and agreements with suppliers for medical cannabis and cosmetics.

The legalisation of recreational use is also paving the way for growth. Cannabis-based ingredients are being used in tinctures, oil, vapes, and edibles.

According to data compiled by Grand View Research, the legal marijuana market is expected to reach US$146.4 billion by the end of 2025.

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