RavenQuest BioMed Inc (CNSX:RQB) Enters Growing Australian Medical Cannabis Market
After securing a joint venture deal to enter the European market starting with Portugal, RavenQuest BioMed Inc (CNSX:RQB) (OTCMKTS:RVVQF) (FRA:1IT), will now export cannabis to Australia, one of the world’s fastest growing markets for medical cannabis and related products. This step was made possible after Health Canada (Canada’s federal ministry of Health) has granted RavenQuest an official approval to export cannabis to Australia. And, the timing could not be more auspicious, as Canberra, Australia’s federal capital city, legalized the possession and cultivation of up to 50 grams of dried cannabis/marijuana in the country for recreational use. While, recreational cannabis remains illegal beyond the boundaries of the Australian Capital Territory, Canberra has taken the lead in promoting the legalization of recreational cannabis, reflecting both public and political sentiment.
Australians are among the world’s most regular users of cannabis and while some conservative attitudes remain, many politicians have expressed favorable views toward legalization. Indeed, the process of legalization of medical cannabis in 2015/2016 was backed by all parties in the government coalition. (Source: Sydney Morning Herald).
Australia approved the use of cannabis for medical purposes in 2016; and RavenQuest, under the terms of Health Canada’s permit, has secured the right to export dried cannabis flower to Medcan Australia (“Medcan”), a state-licensed Australian medical cannabis supplier, starting as soon as the middle of this month (October 2019). Medcan can legally grow, process, import and medical cannabis products for use in both clinical trials and by individual patients. Moreover, the ‘social momentum’ has become increasingly weighted toward increased legalization and availability of cannabis.
Australians have been demanding more medical cannabis products and the Federal Government has decided to invest US$2.0 million to research the efficacy of cannabis in treating cancer, while other clinical studies have tested cannabis as a treatment for dementia. The studies coincide with greater political impetus to facilitate the availability of medical cannabis throughout the vast territory of Australia and its rural areas by increasing the number of cultivation licenses (Source: GrowthOp).From a business perspective, therefore, Australia, with a population of over 24 million, represents a safe and growing cannabis market with clear and stable regulations; and securing a partnership in the ‘Land Down Under’ clearly represents an important step for RavenQuest, where it can both exploit customer demand and its technical advantages over competitors, which are certainly eying the same opportunities…and not just in Australia.
Even as it pursues concrete opportunities below the equator, RavenQuest has secured a definitive agreement formalizing its European joint venture with Cannabis Biocare. This will give RavenQuest a leadership vantage point from which to thrive in the European Union, which could well become the largest legal cannabis market in the world. And this leadership will not solely rely on fickle distribution and marketing arrangements; RavenQuest has a scientific/academic advantage over the competition, having worked closely with McGill University, and extending that research partnership with its new Centre of Excellence for Cannabis (opening on October 17, 2019). It was, in fact, RavenQuest that helped McGill University obtain the relevant cannabis license to set up the unique research facility. McGill has adopted RavenQuest’s ‘orbital gardens’ approach to cannabis plant cultivation, which will enable the company to pursue advanced studies to further improve the system and its energy efficiency – and profitability. The relationship with McGill will inevitably also boost RavenQuest’s reputation with end-users, regulators and industry leaders, giving it an additional edge (including the offer of government research grants) that allows it to stand out from competitors through the ownership of more intellectual property. The benefits of more research go beyond the aspect of ‘prestige’ among peers. Being able to grow more cannabis plant with less energy and using less space means that RavenQuest does not need to resort to using bio-chemical enhancers such as pesticides, herbicides or fungicides, allowing for the delivery of a flower product of highest possible quality and the lowest levels of toxins.
This advantage is most evident in RavenQuest and McGill’s work to with beneficial microbes which naturally and positively stress the plant for disease resistance and yield maximization. Mircrobes and intellectual property from the McGill research will be owned by RavenQuest.
The Global Agricultural Microbials Market was $2.88 billion in 2017 and is expected to reach $11.45 billion by 2026 growing at a CAGR of 16.5% -Stratistics MRC
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