Hemp is a variety of Cannabis that is grown for the industrial uses of its derived products. Its cultivation is legal as is a wide range of derivatives including hemp oil.
Other Cannabis extracts (cannabinoids*) for medical and other uses derived from the Cannabis plant are among the most effective pain relievers. Up to now, it has been illegal in most countries. But fortunately, that is changing. While we will not process cannabis illegally, we are prepared for legalization in one or more Asian countries.
Australia and New Zealand legalized cannabis for medical use in 2016. We are analyzing and reporting the progress investors have made since then. Our report will be available mid-2020.
* Cannabinoids (CBD) such as tetrahydrocannabinol (THC) and cannabichromene (CBC), cannbigerol (CBG), and cannabinol (CBN). All have different uses in manufacturing health and beuty products. We are NOT dealing with marijuana for recreational use.
Demand for cannabinoids
A market in Asia of 5 billion persons
Relieving pain is something we all need to do from time-to-time; It may arise from sports injury, post-surgery and fibro-myalgia or just sitting too long. Worse still, people suffer pain from diseases such as cancer and many others have epilepsy or suffer disabling nausea. These diseases are debilitating, affecting mood, personal relationships and the ability to earn a livelihood.
The global market for pain therapeutics is predicted to increase from $19.7 billion in 2016 to around $28.8 billion in 2023, a 5.5% growth. In Asia massive youthful populations are entering their middle-age (the median age of the 4.6 billion people in Asia is 31 years, but by 2050 a full quarter of the population will be over 60). China is "greying", and Japan already has an aged population.
Asia Pacific is likely to see the fastest growth with increasing focus on palliative care. The need for improved infrastructure and a rise in healthcare expenditure, high unmet clinical needs and government initiatives to raise awareness regarding good pain management are driving the market. The alternative medicine market is larger, perhaps $200 billion.
We will establish a Contract Manufacturing Organization (CMO) in Asia as a stand-alone enterprise to exploit this dynamic opportunity and provide a way to move quickly, efficiently and profitably into this space. The CMO’s target markets are enterprises that see the revenue potential, have the contacts to navigate legal environments but do not have the technical or regional know-how.
The CMO will consist of:
Controlled Environment Greenhouses (CEG);
Supercritical Carbon Dioxide Solvent Extraction (sCO2) and Fractionation Facilities and Equipment;
Quality Control Labs, Packaging and Controlled Warehousing.
The CMO will allow us to grow selected varieties of Cannabis using minimal naturally-derived pesticides/herbicides and intensively in a controlled environment, extract the active ingredients (THC, cannabinoid, etc.) using state-of-the-art equipment, and supply brand owners and distributors. Our customers will be mainly regional pharmaceutical and beverage industries, but we will supply worldwide if the market requires that.
Key elements in the CMO are:
Cannabis of the required varieties grown in controlled environment greenhouses (CEG) to maintain preferred ranges of environmental parameters such as temperature, humidity, light and water and nutrients. Hydroponics will provide more control over the levels of heavy metals than does a soil-based system.
Extraction of THC, cannabinoids, cannabinols and other cannabis biomolecules of therapeutic value and their refining into specific active ingredients on demand.
Pharma-level QA/QC protocols and manufacturing processes to ISO certification standards.
Our aim is to target the higher value-added Cannabinoid opportunities only. Being first to have this infrastructure in place is vital.