When it comes to understanding a cannabis company, one that other businesses should look up to is Canadian-based, Westleaf. WestLeaf not only specializes in cultivation, extraction, processing, and manufacturing, but also owns a number of retails, i.e. “Prairie Records”.
All that said, the Chief Commercial Officer (COO) of Westleaf, Adam Coates recently accepted an interview with news outlet, Mugglehead, in which the former shared the company’s plans in moving deeper into the extraction business with Canada’s soon-approaching “Legalization 2.0”. According to Coates in an interview with Grizzle:
“Moving upstream into the extraction business, this is where we are really excited to participate in this new wave of products that are coming available and legal in Q4.”
The aforementioned is deemed possible due to the company’s partnership with Colorado-based extraction business, Xabis, where Xabis was the one to have designed the new facility that is poised to deliver at most 65,000 kg of cannabis a year.
Coates shared that their facility is what will contribute to expanding within the extraction industry, adding that this allows the firm to participate in the production of new products i.e. gummies and concentrates. He trusts that they “are going to be the biggest products and margin opportunities in cannabis and cannabis production.”
In addition, Xabis will supposedly provide 200 individual production formulations (SKUs) and 24 different factor forms, as shared by Mugglehead. As per the COO, this will serve as the foundation to Westleaf’s line of products.
Interestingly, the facility will not only be used by Westleaf, as the cannabis firm supposedly entered a $4 million deal, commencing October 1, with cannabis producer, Delta 9 in which the latter can grow for a timeframe of one-year. This endeavor, according to Coates, implies a way to “diversify its revenue stream.”
Legalization 2.0 is deemed the next stage up within the Canadian cannabis legalization. This is where the country will legalize cannabis-infused gummies and concentrates on October 17, 2019.
That said, Coates is the least worried, as he shared that Westleaf’s “in-house ability” and its “retail channel” is what makes it vertically integrated, and capable of tending to consumer demand. He further noted that:
“It will help grow our brand and the loyalty of the consumers as they start testing our products when they become legal and on sale.”