Aurora Cannabis (TSXV:ACB; OTCQX:ACBFF; FRANKFURT:21P) and Radient Technologies (TSXV:RTI) revealed in a press release on Monday (June 5), key findings for joint research efforts on Radiant’s proprietary Microwave Assisted Processing (M.A.P.) effectiveness with cannabinoid extraction.
“The ability to produce high-purity concentrates at very high-purity while preserving terpene profiles, will provide a substantial competitive advantage for us in addressing the high- growth concentrates market,” Terry Booth, CEO of Aurora, said in the statement.
Denis Taschuk, Radient’s CEO, said the company will now commercialize their technology in “what has become the fastest growing sector of the North American economy.”
Both companies are hoping to continue their partnership and their joint ventures in the future.
Improved cannabinoid extraction technology
According to the companies’ summaries, the M.A.P. technology showed an extraction efficacy of up to 98 percent, representing a 10 percent increase from the conventional technologies used today.
The results also indicated a quick return for the technology with the whole processing clocking in at five minutes; current commercial tech can take close to six hours.
Based on a recent private placement deal of “7.0 [percent] unsecured convertible debentures for gross proceeds of C$75 million,” Smallcap Power wrote, noting the company is positioning itself to expand and grow its value proposition to investors.
This announcement became a hot topic of conversation on the popular Weed Stocks subreddit page with 46 upvotes, as of 4:15 EST on Monday.
The potential to replicate the technology in different “jurisdictions” got some Reddit users excited, with DuckDuckJuke pointing out the intention from many companies to join the German market.
Following a few posts speculating a selloff option incoming, Infinite-hold gave a sobering comment writing there was no language indicating that since “they haven’t laid out the agreement yet.”
I for one am done trying to make sense of the investor volatility in this sector. I know what I hold. RTI will be worth more in a year than it is today (IMO) and I’m fine with peaks and valleys along the way,” wrote user HamiltonKyle. “I’m an investor, not a trader.”
Radient’s shares closed last Friday at $0.73 following 2.67 decrease last week. The news on Monday did little to boost the company’s share price, closing even lower at 0.62 on the TSXV.
Stocks of Aurora also saw a decrease on Monday, closing at $2.11. Year-to-date the company has seen a dip of 8.26 percent.
Overall the announcement boasts well about the partnership between the two companies, both intend to continue working together and Radiant is even seeking to commercialize this technology.
Don’t forget to follow us @INN_LifeScience and @INN_Cannabis for real-time news updates!
Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.