Discover Wellness Solutions (WLNS.C) received their first industrial hemp license, effective until February 5, 2024, to sell industrial hemp today, according to a press release.
The license gives Discover the ability to sell industrial hemp as grain, flowering heads, leaves or branches, and gives them the nod to import or expert both seed or grain. The license is a positive step, because without it they can’t fulfill the next step of their strategy, which involves getting into CBD.
“The industrial hemp licence is important to the company’s distribution strategy as it dramatically reduces the regulatory overheads on industrial hemp flower, grain and seeds sales, and fits in well with our cost leadership strategy,” said Peter Cheung, interim chief executive officer and chief financial officer.
Discover Wellness Solutions (formerly RMMI. They changed their name earlier this year) is a Canadian cannabis company which is licensed through a subsidiary to cultivate, produce, process and sell cannabis. Their interest is in building shareholder value and trust through establishing cost leadership in hemp processing and CBD extraction, while working towards the fulfillment of a strategy for global distribution.
One of their previous steps towards meeting those goals included a last-October partnership with plants genetic tech company, SynerGenetics Bioscience, which they have been working with on the development of hemp strains with high-CBD content. This came shortly after their first successful transaction wherein the company bought one million kilograms of high-CBD hemp flower and biomass, ensuring that they were happy with their supplier before signing anything definitive.
“Completion of the SG transaction is a significant step forward in executing on RMMI’s strategic shift into hemp processing and CBD extractions. This partnership with SG provides us with the expertise, relationships, premium high-CBD flower and biomass and exclusive genetics to create a vertically integrated platform from CBD seed to concentrates at scale,”said Peter Cheung, interim chief executive officer and chief financial officer.
Shares rose slightly on the news, and WLNS is presently trading at $0.43.
—Joseph Morton
Full disclosure: Discover Wellness Solutions is an equity.guru marketing client.
