Ayurcann Holdings Corp CEO Igal Sudman told investors that the profitable and growing cannabis company had achieved a significant increase in production and market share in recreational cannabis in Canada.
The Toronto-based cannabis extraction company, which specializes in the processing and co-manufacturing of pharma grade cannabis and hemp to produce various derivative cannabis products in the medical and recreational market, recently reported revenue of $3.2 million for the fiscal second quarter of 2021 after boosting capacity at its Pickering extraction and processing facility.
Following the completion of its Phase 2 expansion, Ayurcann’s Pickering facility now boasts an extraction capacity of up to 300,000 kilograms of biomass and up to 3 million filling and co-packaging capability for cannabis 2.0 and 3.0 products.
READ: Ayurcann Holdings reports strong fiscal 2Q revenues
"We are excited about the direction Ayurcann has taken and are thrilled to see our market penetration and revenues growing consistently. With new SKUs now listed in recreational cannabis in various categories throughout Canada, we are proud to be able to show continued growth," Sudman told investors.
He added: "With extraction capacity for bulk biomass of up to 300,000 kilograms per year and the ability to co-fill up to 3 million production products for the medicinal and recreational markets, we are confident in providing value for our shareholders."
The firm highlighted its bulk oil sales growth with a consistent inventory of over 300 kg of THC and CBD available for licensed producers, manufacturers, and brands in the medical and recreational cannabis space.
Sudman pointed out that the company is also working innovatively with “multiple national and international brands” for product development and commercialization in the white label space.
Ayurcann highlighted the following milestones:
- Ayurcann has sold THC and CBD distillate containing over 1 billion milligrams of cannabinoids in the Canadian market for vapes, tinctures, topicals and edibles, while working with top selling brands in Canada and internationally;
- It has won two industry awards as Top Canadian Processors and Top Tolling Provider in the Canadian cannabis industry;
- The firm has entered and fulfilled multiple orders from Ontario, Manitoba, Alberta, Saskatchewan, and New Brunswick, with the Fuego Vapes brand establishing itself as top-seller;
- The Vida Tinctures and Glow Topicals have successfully grown their market share;
Meanwhile, Ayurcann has signed a letter of intent with Tetra Oils Inc. to buy a 100% interest in its wholly owned subsidiary Joints and Hustle. Ayurcann currently supplies the CBD and THC distillate and isolate for their products. Consideration for the acquisition has been set at $7.20 million to be satisfied through the issuance of 40 million Ayurcann shares.
In other new opportunities, Ayurcann said it is working with eight recreational cannabis brands and it has over 500 provincial listings. It added that it is launching new stock keeping units (SKUs) in the market with distillate-focused products leading the way.
Ayurcann said its new highly potent vape brands are Bravo6, Xplor and Oy Vapes, and Her Highness constitutes the company’s line of intimacy oils that enhance the experience consumers enjoy with CBD and THC products in the bedroom.
Ayurcann is a post-harvest solution provider with a focus on providing and creating custom processes and pharma grade products for the adult use and medical cannabis industry in Canada.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
Follow her on Twitter: @UttaraProactive