- Facility
in Costa Mesa, California, will enable full range of cannabis distribution
services
- Powdered
cannabis CBD and THC formulations for beverage alternatives expected to
drive multi-billion-dollar market
- Pivot
Pharmaceuticals expects to have licensing to begin manufacturing by July,
with equipment installed by August
Cannabis-friendly biopharmaceutical firm Pivot
Pharmaceuticals Inc. (CSE: PVOT) (OTCQB: PVOTF) (FRA: NPAT) is rolling at a
good pace with its recent announcement that its Canada-based operation has also
found solid footing in the United States through a lease agreement on a
California manufacturing facility that will allow the company to operate
wholesale medical marijuana distribution, manufacture, processing and
transportation and set up research and development laboratories.
According to a May news release (http://ibn.fm/0999d), Pivot
intends to use the manufacturing facility to begin production of a portfolio of
patented cannabis-derivatives that will be marketed under the “Pivot Naturals”
brand. The company will use high-quality cannabis oil and plant elements to
generate food additive powders and capsules through its patented “Ready To
Infuse Cannabis (RTIC)” process for sale in the California market — the largest
marijuana market on the planet.
Once it has obtained the licensing, the Costa Mesa
production pipeline will look to take advantage of annual legal cannabis sales
in California that totaled about $2.8 billion in 2016 and are expected to grow
to $3.7 billion this year, then $5.1 billion next year, thanks in large part to
the state’s legalization of adult recreational use in January (http://ibn.fm/iYWYq).
“I expect that we will receive the necessary local and state
manufacturing licenses in July 2018 and complete production equipment
installation by August 2018. Pivot Naturals’ capsules, stick packs and bulk
powder should be on the shelves of dispensaries in California by Q4 2018,”
Patrick J. Rolfes, president of Pivot Naturals, LLC, stated in the news
release. “In addition, we have been inundated by requests to supply our
patented RTIC powder for white label products and we fully intend to continue
to sign manufacturing and supply agreements with respected cannabis brands in
our state.”
Pivot’s RTIC process and Solmic Micelle water-soluble
technologies will be used to generate a dry cannabis powder that can be used as
a baking additive, in pet products and in a variety of retail items. Part of
the manufacturing facility will be used to produce topical creams and oral drug
delivery technologies, but, at the moment, one of the company’s key focuses is
the potential to stir a bit of flavorless, odorless cannabis powder into a
favorite beverage — either as non-psychotropic CBD formulations or more
intoxicating THC formulations.
“The beverage market opportunity is just too big to ignore
and our patented technologies lend themselves well to this space,” Pivot CEO Patrick
Frankham stated in a May news release (http://ibn.fm/naKCC). “Existing solutions are unable to
provide consistent dosing nor offer the most effective bioavailability, of
which our patented technology is able to remedy. … It is our intention to
supply CBD and THC additives as ingredients for global wine, spirits, beer and
energy drink companies who have the capabilities for large scale manufacturing
and distribution.”
Equity research firm Cowen and Co. predicts that the
cannabis market will generate $75 billion in annual sales by 2030 (http://ibn.fm/9DmiR), based in
large part on its analysis of consumers’ “social lubricant” binge drinking
behavior and the drive to substitute cannabis for alcohol in some beverages.
“We found that legal cannabis states (as of 2016) binge
drink 13% fewer times per month than non-cannabis states,” the company’s report
states.
For more information, visit the company’s website at www.PivotPharma.com
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