Canada House Wellness Group Inc.(CSE:CHV) is one of the companies that are able to stand out in the highly competitive and fierce cannabis industry. The company recently announced its harvest and revenue of cannabis seeds and from the looks of it, Canada House Wellness Group is coming into 2019 with a great momentum behind it.
According to a press release, Canada House’s wholly owned subsidiary Abba Medix recently completed its four batch harvest of premium medical cannabis in Pickering, Ontario. Samples have already been sent to the lab for quality assessment. The facility occupies over 22,000 square feet, which, upon building completion, is expected to produce somewhere between 2,000 to 3,000 kilograms of dried flowers annually.
Canada House’s CEO Chris Churchill says that these earlier batches will be the basis for the company’s methodologies and it will serve as an initial step for them before going into commercial production.
He goes on saying, “…[N]ot only are we extremely pleased with the quality of the harvest; our strains are expected to result in products that enrich the lives of Canadians and provide much-needed support to our medical cannabis patients.” Aside from this, the company has also readied two batches of bulk purchased cannabis for Health Canada’s pre-sales inspection which will be a requirement for a future sales license.
Beyond improving their line of cannabis seeds, Canada House and Abba Medix were also successful in the retailing of its seeds to the Canadian Licensed Producer community through its online e-commerce platform. Producers can buy over 200 strains of cannabis seeds that are the result of Canada House’s genetic studies. According to the press release, seed sales have resulted in approximately $40,000 in revenue. The company has high hopes for the sales considering they have enough supplies to meet the demand that ensued after the ban on marijuana was completely lifted last month.
Retailers staying up all night to get good supplies
Various retailers and producers already expected the demand to surge greatly after the legalization is completed but it seems the shortage of cannabis in Canada was more than what was anticipated. Until now, many retailers are struggling to get a hold of products to sell, leaving many consumers unsatisfied.
Financial Post says that National Access Cannabis Corp., the country’s largest private marijuana retailer that has a total of 17 stores consistently watches Alberta’s provincial regulator. It went as far as hiring a five-man team to wait for new inventory to buy 24/7. CEO Mark Goliger says that thousands of dollars worth of inventory can be up at one minute and be sold out a few minutes later. He adds that other retailers are probably watching the inventory 24/7.
Canada’s cannabis industry is struggling and succeeding at the same time. While sales are visibly good, companies are struggling to keep up with the strong demand. However, if companies like Canada House continue to upgrade their production capacity, the supply and demand will even out eventually.