TerrAscend Secures Extracts and Edibles License

TerrAscend Corp. [stock_market_widget type="inline" template="generic" color="default" assets="TER.CN" markup="(CSE: {symbol} {currency_symbol}{price} ({change_pct}))" api="yf"] has secured a license amendment from Health Canada that allows it to sell cannabis extracts, topicals, and edibles.

Canada officially legalized cannabis derivatives last week and the first products are set to hit shelves before the end of 2019. It is dubbed Cannabis 2.0 and the industry hopes it will deliver a much-needed shot in the arm to the regulated recreational marijuana sector.

Health Canada has granted TerrAscend a license amendment that allows it to launch a total of 15 SKUs, including edibles, vape pens, and cartridges. The company plans to expand its range in the coming months after the industry matures and demand hopefully grows.

Chief executive Michael Nashat said it will allow the firm to bring “safe, standardized products” to Canadian consumers, while bringing its U.S. brands and formulations north of the border for consumption.

That is a reference to the current backlash against the illicit THC vape cartridges blamed for an illness epidemic that has killed more than 30 people in North American and left many more unwell. Investigators have generally attributed the lung illness to black market THC vaping devices, but they have not tied the cases to any specific products.

Yet the backlash could put a serious dampener on the potential for legal vape sales to flourish in Canada during the new wave of legalization.

TerrAscend bills itself as the first and only global cannabis company licensed for sales in Canada, the U.S., and the EU. It has spent the year increasing its production capabilities and bolstering its position in the U.S. market.

Its facility in Mississauga is EU GMP certified and earlier this month the firm secured approval from Health Canada to expand it by almost 300%, from 17,800 sq. ft. to 51,800 sq. ft. It is now in the process of building out additional cultivation capacity, a commercial kitchen, formulation rooms and increased packaging capacity to allow for new product formats and extracts for the Canadian Cannabis 2.0 market.

It also closed the first tranche of a proposed US$25 million private financing round to fuel growth. It has purchased retail chain the Apothecarium and Pennsylvania super license holder Ilera Healthcare in an effort to become a major player in the U.S.

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Martin Green
Martin Green is an experienced journalist with a strong focus on the cannabis, alcohol, and gambling industries. He is particularly interested in the political issues affecting the global marijuana trade, and he has a keen focus on regulation changes and legal topics. He holds a BA English Literature, MA Creative Writing and a National Qualification in Journalism diploma. He has worked in journalism since 2009 and written for a broad range of newspapers, business titles and magazines, including The Sun, The Metro, The Journal, Livestrong, Drinks Retailing News, Harpers, Sportsbook Review, Vital Football, Essex Live and Surrey Live. Address: 682 Indian Road, Toronto, Ontario, M6P 2C9. Phone: 416-721-8257.
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