Chemesis International (CSI.C) has signed letters of intent (LOIs) with 34 private liquor stores in British Columbia to distribute their hemp-based chew products.
Not everybody likes to smoke dried flower, which has created a demand for delivery and ingestion systems for cannabis. While most companies are looking to options like vapes or sublingual strips (which Chemesis also does), there aren’t many companies offering smokeless chew, and that has created a big opportunity.
“As the brand and products continue to develop, the Company will look to replicate these type of distribution arrangements. We are excited to be able to offer the market a smoke-less, tobacco-free product which is a healthier alternative to otherwise similar products currently available,” said Edgar Montero, CEO of Chemesis.
Last year’s Cigarette and Tobacco Manufacturing research report indicated that the market for these products was CAD$2 billion, with an annual growth rate of 8% from 2013-2018.
Chemesis’ chew comes only in hemp-derived CBD right now, but the company is busy installing manufacturing equipment in facilities in California and Puerto Rico to manufacture THC and CBD-based products for state-by-state distribution.
The company intends to begin distribution of its products throughout Metro Vancouver and select B.C. markets by early Q4 2019.
How it works
When the cannabis (or hemp) is chewed, the cannabinoids are absorbed through the lining of the user’s mouth and are carried directly to the buccal artery, completely bypassing the liver.
Skipping the liver and going straight to the bloodstream creates an onset that is both faster and with less dilution, which is important especially if the rumours are true about CBD being a potential cessation aid for tobacco.
Research published by the U.S. National Institutes of Health has shown that CBD has psychological properties that may present a potentially ideal drug for use in smoking cessation due to its minimal side effects and its anxiety-reducing properties. They don’t know for sure yet, so further studies are presently underway to determine whether or not CBD is a viable solution to help tobacco users quit.
Chemesis on the move
Chemesis has been building a portfolio of patented delivery methods for cannabis, including THC and CBD.
“Chemesis has put significant efforts into building a wide and differentiated product portfolio,” stated Chemesis CEO Edgar Montero, “aligning and symbiotic with our focus on building out our retail dispensary footprint.”
Together with Canadian pharma-technology company, Rapid Dose, they produce the QuickStrip, a sublingual cannabis strip that fits under the tongue and delivers a measured dose of the desired cannabinoid (THC or CBD) directly to the bloodstream just like the chew.
The past few months have been bumpy for Chemesis with their stock price down nearly half what it was in June, but this is the trend right now for most of the cannabis industry, which is still reeling from the Canntrust (TRST.T) scandal.
—Joseph Morton
Full Disclosure: Chemesis International is an equity.guru marketing client.
