Producing and Developing Cannabis Products for the Sports Medicine Market
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Orion Nutraceuticals Inc. (CSE:ORI) is a Canadian cannabis life science company primarily focused on developing a footprint in Colombia’s medicinal cannabis market. Orion Nutraceuticals owns cannabis facilities in Colombia and Canada that are focused on cultivating cannabidiol (CBD) strains that meet the needs of the sports medicine market, which has recently seen the decriminalization of CBD from regulatory bodies like the World Anti Doping Agency (WADA).
Orion Nutraceuticals has partnered with FCM Global SAS, Colombia’s first licensed producer and exporter of non-psychoactive medical cannabis extracts. Orion Nutraceuticals is working towards obtaining a 49 percent interest in FCM Global, who owns a 235,800-square-foot facility in La Ceja, Antioquia, Colombia. The company expects the facility to be able to produce 50 tons of extract by 2020.
FCM also owns a 450-hectare property in Natagaima, Tolima, Colombia where the company will be constructing indoor and outdoor cultivation facilities along with production and exportation infrastructure. Once operational, FCM Global expects that the property could generate $1 billion in revenue by 2023.
Orion Nutraceuticals owns 99 percent of Medic Oasis, a late-stage Access to Cannabis for Medical Purposes Regulations (ACMPR) production license applicant with a 31,688-square-foot growing, manufacturing and distributing facility in Dorval, Quebec, Canada. Once granted their license, the company will begin building out a 20,000-square-foot production facility with in-house lab support services and R&D capabilities. The facility will solidify Orion Nutraceuticals’ presence in Canada, and will also be its import and export center.
Taking advantage of the strategic placement of all three facilities in Canada and Colombia, Orion Nutraceuticals intends to export its products overseas into legalized cannabis markets across the globe. The company will also be partnering with professional athletes, leading research organizations and sports leagues to promote their products.
Orion Nutraceuticals is developing a comprehensive line of nutraceutical and pharmaceutical branded cannabis extracts and oils for the sports medicine therapy market, giving the company a first mover advantage in the space. To ensure their products are compliant with sport doping regulations, their products will be CBD-based and will focus on relieving pain, reducing inflammation, decreasing recovery time and potentially offsetting brain injuries in athletes.
- Operating in low-cost growing environments of Colombia and Quebec.
- Import and export potential from Colombia and Canada.
- La Ceja facility will be able to produce 50 tons of extract by 2020.
- Tolima facility is expected to generate $1 billion in revenue by 2023.
- First mover advantage as a cannabis company in the sports therapy market.
- Planned partnerships with leading research organizations, professional athletes and sports leagues to introduce and promote their products.
- Product lines to include medicinal and over-the-counter products, as well as bulk extracts and oils.
Orion Nutraceuticals has formed a partnership with and is working toward obtaining a 49 percent interest in FCM Global SAS, Colombia’s first licensed producer and exporter of non-psychoactive medical cannabis extracts for medical and research purposes. FCM Global is headquartered in Medellin, approximately 40 kilometers northwest of its facility in La Ceja, Antioquia.
In addition to its facilities, FCM Global supplies pharmaceutical, nutritional, wellness, and cosmetic companies across the globe with customized medical non-psychoactive cannabis extracts, oils and isolates. The company will also collaborate with its clients on their R&D initiatives.
FCM Global has developed a line of non-psychoactive cannabis oils and dried flower. Their VerdeCann Full Spectrum branded products are rich in CBD and contain all the active cannabinoids, terpenes, fatty acids, flavonoids, vitamins and minerals from the natural plant.
FCM Global’s 235,800-square-foot La Ceja medical cannabis facility is equipped to support numerous cannabis related capabilities, such as research, genetics, cultivation, extraction, packaging, storage, distribution and exporting. The company expects the facility to be able to produce 50 tons of extract by 2020.
Their La Ceja facility is licensed to grow cannabis plants that do not have THC content greater than one percent of its dry weight. This licence covers the sowing, acquisition and production of seeds, storage, marketing, distribution and final disposal of plants. The facility is also licensed to export and use cannabis for medical and scientific purposes. FCM Global is also in the final stages of receiving its high-THC licenses.
The FCM Global state-of-the-art cultivation greenhouse hosts over 150 beds and was purposely built to maximize the health and yield of each cannabis plant. The space is fully-enclosed and offers the master growers real-time monitoring, tracking and analysis of all critical growth factors, including temperature, carbon dioxide, humidity and soil pH levels. The sensor system can also help prevent diseases and pests while managing the use of water, energy and fertilizers.
FCM Global does not use synthetic fertilizers or toxic chemicals on their plants and is committed to minimizing waste when possible by recycling all applicable materials. Additionally, the company is planning on adopting solar power at the property. FCM Global has also committed itself to providing transparency for all their products and has adopted a platform that offers seed-to-sale traceability and security.
FCM Global has secured a 450-hectare property in Natagaima, Tolima, Colombia. Over 300 hectares of the land package is suitable for outdoor cultivation and the remaining 150 hectares would be suitable for developing production and exportation infrastructure. The property will feature indoor propagation and controlled outdoor cultivation that will utilize practices and systems currently used at La Ceja. FCM Global is also planning on adding further onsite capacity to develop, manufacture and distribute finished products.
Once the property is operational, FCM Global expects the property to be able to generate $1 billion in revenue by 2023. Additionally, the company’s production licenses can be extended to new properties or partnerships that FCM Global acquires and forms.
The Colombian advantage
Colombia is Latin America’s third largest economy by GDP, according to the World Bank. Historically, Colombia has been dependent on energy and mining exports, making it vulnerable to fluctuations in commodity prices. However, agriculture has remained important to the country’s economy. The agricultural sector employs 17 percent of the labor force and is accountable for 7.4 percent of the country’s GDP.
Colombia’s agricultural success can be in part attributed to its equatorial climate, ideal luminosity and optimal elevation, which are all important factors when growing cannabis and make Colombia home to hundreds of indigenous cannabis strains. On top of the excellent growing conditions, the country has access to numerous renewable resources and rainwater.
Colombia also has some of the lowest production and operating costs compared to Canada, access to high-quality extracts at commercial scale and the ability to keep pace with a rapidly changing competitive landscape. Additionally, Colombia is well-positioned to become a major player in the global cannabis market. The country’s geographic location gives them access to both the Pacific and Atlantic oceans and high-potential markets in Argentina, Brazil, Chile and Mexico. The structure of their legal framework also offers the potential for cannabis companies to export their products to markets in Europe.
Orion Nutraceuticals owns 99 percent of Medic Oasis, a late-stage ACMPR production license applicant with an 11-year lease for 31,688 square feet of growing, manufacturing and distributing space in Dorval, Quebec. Under the lease agreement Orion Nutraceuticals has a right of first offer on any adjacent space that becomes available for lease.
Once the production license is approved, the company plans to commence the construction of its 20,000-square-foot production facility that will utilize vertical growing techniques. Orion Nutraceuticals also intends to develop in-house lab support services and R&D capabilities at this facility as well.
Once the facility is complete, it will become an integral part of Orion Nutraceuticals’ business development. The facility will expand the company’s presence throughout the Canadian cannabis sector and will allow Orion Nutraceuticals to import and export cannabis oil from Colombia to other parts of Canada, Europe and to legalized markets across the globe.
Finally, Medic Oasis will be an instrumental component of Orion Nutraceuticals’ development of specific strains, potent extracts, nutraceuticals and pharmaceuticals. The later will incorporate cannabis and cannabis-related medical science in the formulation of their sports medicine therapies and cannabis products.
The Quebec advantage
The province of Quebec offers numerous benefits for companies looking to grow cannabis there. First and foremost, Quebec is home to approximately 20 percent of the Canadian population, offering a large potential consumer base and a strong pool of land, labor and technical expertise available to the few licensed producers operating in the province. The province has granted 11 licenses to producers, which accounts for approximately five percent of all licenses in Canada.
Secondly, Quebec offers some of the lowest energy costs in Canada, which can cut down on capital costs for growing the plant. The last advantage centers around the province’s support for local producers and growers. The province has signed several supply agreements with local producers and growers to supply the government-run retail and e-commerce stories.
According to a report released by Grand View Research, the global sports medicine market is expected to reach $12.5 billion by 2025, growing at a compounded annual growth rate of 7.7 percent. The growth is due to fitness awareness initiatives led by government and health organizations, which has led to more injuries as people engage in more physical activities.
As more research is being conducted into the effects of cannabis, organizations such as WADA have been revising their prohibited drug lists to exclude the usage of CBD and some professional sports leagues are allowing their players to consume CBD as well. This is welcome news for athletes looking for alternative pain relief sources to opioids.
Orion Nutraceuticals will use cannabis extracts and oils to develop a line of nutraceutical and pharmaceutical branded products for the sports medicine therapy market, giving the company a first mover advantage in the space. The products will be CBD-based and will offer athletes solutions for pain management, reduced inflammation, faster recovery times and can help offset brain injuries.
Orion Nutraceuticals will be selling their products through traditional retailers, distributors and wholesalers, but also through homeopathic and pharmaceutical sales channels. Orion Nutraceuticals will also be partnering with leading research organizations, professional athletes and sports leagues to introduce and promote their sports medicine therapies and related wellness products.
Orion Nutraceuticals will be developing medicinal and over-the-counter products, such as transdermal patches, topical gels, personal care products and time-released CBD sports wraps, for the sports medicine market. The company will also be selling cannabis extracts and oils in bulk to meet the demands of the industry.
One of the products Orion Nutraceuticals intends to bring to the market is a cannabis transdermal patch. Transdermal patches offer users numerous advantages such as controlled delivery into the bloodstream, the elminitation of peaks and valleys in effects that are associated with inhaling or ingesting cannabis, it’s non-invasive, improved patient compliance due to a reduced dosing frequency and a reduction in side effects experienced by patients.
Transdermal patches deliver cannabis through a special adhesive that is applied to a veinous area of the body, such as a person’s arm, and the cannabis enters the bloodstream for an effective and long-lasting response. If a patient is experiencing any unwanted effects, they just need to remove the patch to reverse those effects. The patches can be used to manage pain and sleep, among other medical applications, and offers an alternative for users who do not or cannot consume cannabis by inhaling or ingesting it.
Orion Nutraceuticals is developing a variety of formulations, including CBD, THC, THC-A, CBG, CBN, among other blends, for their transdermal patches. The company will be marketing their patches as a solution for a variety of conditions, such as fibromyalgia, peripheral neuropathic pain, Parkinson’s disease, schizophrenia, autism, post-traumatic stress disorder (PTSD), epilepsy, multiple sclerosis and Dravet syndrome.
Jonathan Fiteni — Director and CEO
Jonathan Fiteni is a cannabis pioneer who has worked for over 15 years to actively bridge the divide between global investment capital and legal growers, suppliers, researchers and medical professionals who have dedicated their lives to transforming the cannabis industry. Fiteni has guided several industry startups, raised millions in capital for both private and public companies and developed more than 40 patent pending cannabis formulations.
Most recently, Fiteni was the CEO and Director of Operations for MYM Nutraceuticals, Inc. a publicly listed company focused on building large, licensed production facilities to serve the pharmaceutical-grade and recreational cannabis markets. He graduated from the British Columbia Institute of Technology with a Business Administration and Management degree.
Marcelin O’Neill — Director and CCO
Marcelin O’Neill, is currently a Director and Chief Compliance Officer of Orion Nutraceuticals Inc., and the CCO of Alternate Health Corp. She has also served in various positions at Alternate Health, Cervantes Capital Corp., Jagercor Energy Corp., Brandenburg Energy Corp. and Mandalay Resources Corporation. Since 1994, she has worked with such companies as Augusta Resource Corporation, Westcoast Energy Inc., and the Lundin Group.
In 1987, O’Neill graduated from the British Columbia Institute of Technology, where she studied Business Management and she has successfully completed the CSC and the CPH, both with honors. She is the managing director of Accrete Consulting Inc., a company which provides corporate governance and management services to publicly traded and private companies. With over 24 years of experience in public company management, O’Neill brings a varied scope of knowledge to the companies with which she works.
Robin Linden — Director
Robin Linden contributes over 20 years of leadership and management experience, including roles at the University of Manitoba, Molson Breweries Canada, Canadian luxury retailer – Holt Renfrew, and Fairmont Hotels and Resorts. Linden currently sits on the board of directors for MYM Nutraceuticals, a publicly traded Canadian medical cannabis company. He has been instrumental in initiating various projects, including the current construction of over 2.7 million square feet of cannabis production space in Canada and Australia.
Linden brings with him experience in the branding and sales of a variety of cannabis-based products. He holds a Bachelor of Arts degree (with honours) from the University of Manitoba and obtained post graduate diplomas from both Simon Fraser University (Vancouver) and the University of St. Andrews (Scotland).
Chris Cherry — CFO
Christopher Cherry has over 15 years of corporate accounting and audit experience, having been a Chartered Accountant (CA) since February 2009 and a Certified General Accountant (CGA) since 2004. He has held a number of senior level positions, including as a Senior Accountant at KPMG and as an Auditor at Davidson and Co. LLP in Vancouver. Cherry has also served at the director and officer levels for a number of public mining companies. He is the founder of Cherry Consulting, Ltd. He also earned a Bachelors of Technology in Accounting from the British Columbia Institute of Technology.
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