Quadron Expands Product Range to Capitalize on Extracts
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Quadron Cannatech is a Vancouver-based provider of equipment, products and service solutions for the authorized cannabis industry, providing a full array of end-to-end extraction and processing solutions, including sales of end-user delivery options (such as vapor pens) for medical and recreational consumers. With a growing product portfolio, the company is uniquely positioned to capitalize on this growing demand over the coming years.
There’s little doubt that cannabis extracts account for a growing percentage of the North American cannabis market. In Canada, extracts accounted for about 60 percent of all cannabis sales, as of the third quarter of last year (the latest data available). In the U.S., cannabis extracts have become increasingly popular in California, Nevada, and other markets where consumers are looking for alternatives to smoking cannabis.
Growing Market for Extracts
Canada’s cannabis industry is projected to reach C$22.6 billion over the coming years, according to Deloitte, driven by the legalization of recreational cannabis use this summer. While cannabis flower characterized the market in the early years, cannabis extracts have become increasingly popular and eclipsed cannabis flower sales this year. These products are commonly used in vaporizers or edible products that may be more accessible to consumers.
According to Health Canada, cannabis extract sales rose from about 50 percent of total cannabis sales in the first quarter to about 60 percent of sales by the third quarter of last year (the latest data available). Cannabis oil inventories were also much thinner than cannabis flower - 11,140 kg versus 38,927 kg - which suggests that cannabis extract pricing could be more favorable and consumer demand may have been higher than expected.
Quadron provides turn key cannabis extraction equipment and processing solutions, as well as consumer products (such as vape pens), to licensed cannabis producers. Its flagship BOSS supercritical C02 extraction system combines proprietary max flow technology and advanced thermodynamics, automate features, and an exclusive plug and play design to create an industry-leading solution.
Over the past few quarters, the company has seen growing demand for its BOSS CO2 Extraction System and is co-developing several new pieces of equipment for commercial release into the North American market in conjunction with Washington-based Lucid Labs. This equipment includes an automated ethanol extraction system, advanced filtration system, distillation system, and an automated hydrocarbon extraction unit.
Quadron Places First Mobile Unit
Quadron recently announced the sale of its first mobile extraction module to TLC Botanicals. The First Nation holistic family-owned company is working with both First Nation’s and conventional patients to provide medical cannabis to patients under Canada’s Access to Cannabis for Medical Purposes Regulations (ACMPR). The company plans on providing these products through its subsidiary, Shamans First Choice dispensary.
“It was a pleasure working alongside the Quadron team in the purchase of our new extraction unit,” said TLC Botanicals General Manager Dave Campbell in the press release announcing the deal. “The professionalism they showed us was evident as they took our customized order and made the necessary adjustments to maximize the production levels we require. We look forward to future dealings with Quadron and its great team.”
“Through innovative engineering, and by leveraging our extraction and processing knowledge and expertise, we’ve designed a turn-key, drop in place, fully-functioning extraction environment,” said Quadron CEO Rosy Mondin. “The end result is a processing solution that serves a growing demand within the cannabis industry, enabling participants to process plants for terpenes and other cannabis compounds in a safe and professional setting.”