Radient Technologies Inc. (TSXV:RTI), one of the Canadian marijuana stocks, said it has received a Standard Processing License from Health Canada
SmallCapPower | February 6, 2019: Radient Technologies Inc. (TSXV:RTI), one of the Canadian cannabis stocks, Monday announced that it has received a Standard Processing License from Health Canada that allows Radient to process, sell, and distribute cannabis extracts to other federal cannabis license holders including its partner, Aurora Cannabis Inc. Issued under the new Cannabis Act regulations effective October 17, 2018, the license is mandatory for any facility processing over 600 kg of dried flowers per year. This is a major milestone for Radient, which is capable of processing more than 60,000-70,000kg per year at 200kg per day at full capacity from its Edmonton I Facility alone. Over the next couple of years, the processing capacity is expected to grow multifold, with its Edmonton II Facility (completion in Q3 2019) expected to process 1,200kg of industrial hemp per day into CBD extracts and its Edmonton III Facility (completion in Q1 2020) capable of processing 1,000 kg per day of medical cannabis and over 10,000 kg per day of industrial hemp. Consequently, Radient’s revenues are expected to grow rapidly over the coming quarters.
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Post the announcement, shares of Radient Technologies zoomed nearly 42% to close at $1.15 on the TSXV while shares of its partner Aurora Cannabis jumped almost 9% to close at $10.55 on the TSX.
Radient Technologies CEO Denis Taschuk commented, “This is a huge milestone for Radient Technologies and one that we are thrilled to have reached after a year of momentous growth. Receipt of the Standard Processing license from Health Canada allows the Company to begin producing our high quality extracts and specialty cannabinoid ingredients for our partners, including Aurora Cannabis Inc. This will open up new revenue streams for the Company that will prove to be beneficial as we continue to expand our operations globally, especially in light of recent regulatory developments that will likely have a significant impact on the cannabis industry worldwide.”
Radient Technologies leverages its innovative MAP extraction technology to manufacture high-quality natural ingredients for global customers in the Food and Beverage, Nutrition and Supplements, Pharmaceuticals and Active Care industries. In late 2016, Radient entered the fast-growing cannabis market by signing an MOU with Aurora Cannabis Inc. to process and extract CBD/THC from cannabinoid biomass and, subsequently on November 16, 2017, finalized the agreement with Aurora.
For Aurora Cannabis, the large-scale processing of cannabis extracts by its partner Radient would be critical to capture the rapidly-growing market for derivative products, such as vapes pen solutions, softgels, edibles, and beverages.
In connection with the news release, Radient Technologies also announced the addition to its board, Aurora’s COO Allan Cleiren, who has been assisting Radient in obtaining its Standard Processor license from Health Canada.
Radient Technologies stock currently trades at a market cap of $268 million with a price to book multiple of 5.2x.
Disclosure: Neither the author nor his family own shares in the company mentioned above.
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