RavenQuest BioMed (CNSX:RQB) Secures a Strategic Position in the Burgeoning Australian Medical Cannabis Market
RavenQuest BioMed Inc (CNSX:RQB) (OTCMKTS:RVVQF) (FRA:1IT) has started exporting medical cannabis to Australia. Medcan Australia, a federally licensed medical cannabis provider, took delivery of a shipment of cannabis produced in RavenQuest’s Orbital Garden facility in Edmonton. The transfer was small, a nominal amount, yet significant; because it served as the proverbial ‘canary in the mine.’ It occurred without snags, delays, or bureaucratic problems, proving the viability of the export process itself and establishing the basis for regular and commercial-size shipments of RavenQuest’s cannabis to Medcan – and, potentially, other Australian customers. From a longer-term perspective, MedCan serves as a guinea pig, as well as a valuable individual customer. The experience will allow RavenQuest to fine-tune the most efficient customs and regulatory supply chain for exporting its cannabis to the Australian market.
As for Medcan, apart from serving as a regulatory ‘guinea pig,’ it’s an ideal base for RavenQuest to build a presence in Australia. Medcan needs high-quality cannabis for its burgeoning medical market. It’s already fully licensed (by the Australian Office of Drug Control) to cultivate, produce, export, and import medicinal cannabis for trials and individual patients throughout Australia. In other words, it could have chosen to import from any number of producers. Yet it picked RavenQuest, and therefore it serves as a prestigious showcase for the brand, its quality, and its ‘orbital garden’ process.
This development is significant. The Australian medical cannabis market is growing and could serve as a catalyst for increased revenue at RavenQuest. That’s because the legalization of cannabis in Australia is following a trajectory similar to the one Canada experienced. RavenQuest CEO, George Robinson, suggests that the Australian cannabis market functions along with a ‘regulatory framework that resembles Canada’s medical marijuana laws circa 2001-2010,” meaning that pricing is propitious for producers (Source: MidasLetter Interview).
Medical cannabis is already legal in various States of the Australian Federation. The Government of Western Australia – WA, capital Perth (Source: Grizzle) has just passed legislation, after three years of deliberation, to allow medical practitioners to prescribe cannabis to patients directly: that is without the need to refer them to a specialist. WA’s move comes just weeks after the Australian Capital territory – (similar to the District of Columbia in the United States) – legalized recreational cannabis use. The new measure suggests that the cannabis liberalization process continues at a steady pace, even if progress appears to be occurring at the individual State level (similar to the United States) rather than at the Federal level, as has been the case in Canada.
Moreover, it’s clear now – given Canada’s experience with recreational cannabis – that until the United States follows suit at the Federal level (and this could happen in the context of the 2020 presidential election promises from both Democrats and Republicans) that medical cannabis makes up the lion’s share of the overall cannabis market. Indeed, RavenQuest has expansion plans in Portugal (and potentially beyond) to become a leading supplier of medicinal cannabis for the European market as well.
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