Radient Technologies Inc. (TSXV:RTI) recently received licensed dealer status in Canada and expects to receive a license to manufacture cannabis products this year
SmallCapPower | February 8, 2018: Radient Technologies Inc. (TSXV:RTI) announced recently that its application for the Controlled Drugs and Substances License has been approved by Health Canada. The license grants the Company the status of a licensed dealer within the territory of Canada, in accordance with the Controlled Drugs and Substances Act and its Regulations. Radient Technologies is allowed to possess, package, and transport or deliver cannabis products at its process and product development laboratory, located in Edmonton, Alberta.
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Now that Radient Technologies has its license, it can carry out research and develop products related to cannabis, tetrahydrocannabinol (THC), cannabidiol (CBD), and cannabis resin at its Edmonton-based facility. Furthermore, Radient Technologies is also awaiting approval of its license application to Health Canada’s Access to Cannabis for Medical Purposes Regulations (ACMPR) that would permit it to produce and manufacture cannabis extracts and oils. Radient Technologies expects the grant of ACMPR license soon as it has completed renovation of the manufacturing plant.
Radient Technologies CEO Denis Taschuk said, “The receipt of the Controlled Drugs and Substances License is a key milestone for Radient that will further accelerate the growth of our business within the cannabis sector. It is also a precursor step in the path to licensed manufacturing of cannabis products, which we expect to occur later this year. As a certified Licensed Dealer, Radient Technologies can drive strategic partnerships and product development with Licensed Producers, and potentially, consumer brands entering the cannabis and CBD spaces.”
In terms of valuation, Radient Technologies stock has a market cap of ~$337 million with a price-to-book multiple of 44.12. After the grant of its license by Health Canada, the Company’s valuation could see upswing in near term. Radient’s revenue is expected to increase once Aurora’s 800,000 square feet facility, Aurora Sky, begins production in mid-2018. Radient Technologies entered into an agreement with Aurora Cannabis for the production of cannabis extracts last year. As well, Radient Technologies can be a potential acquisition target for Aurora (which already holds a ~17% stake in Radient Technologies).
Disclosure: Neither the author nor his/her family own shares in the company mentioned above.
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