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Thursday, Apr 18, 2024
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.


Complaints Prompt Canadian Company to Develop Odourless Cannabis Product

Ontario-based CannabCo is waiting on a Health Canada production licence to start offering consumers a cannabis strain they claim is virtually odourless, amid growing complaints over pot’s skunky stink.

Beautiful woman with grimace because of bad smell.

While pot maybe legal in Canada, the skunky, funky stink that comes from cannabis is something that still draws complaints from condo dwellers and residents living nearby legal grow operations. It may seem like a small issue, but the pungent odour of weed is having an effect on policies on housing, public consumption, and large-scale production facilities.

A Canadian company thinks they have a solution to the issue and is developing a “near odourless cannabis” strain, which it claims is an industry first.

Brampton, Ont.-based CannabCo Pharmaceutical Corp. said it has reached an agreement with an unnamed technology provider to work on the production of cannabis designed to virtually eliminate the odour both when packaged and stored prior to use, as well as when it is smoked.

A woman can carry cannabis in her purse without having the odour concentrated or leaking out in her handbag.  A number of users, and people that are around cannabis smokers, complain about the smell especially in enclosed areas, condos, and apartments, and this technology addresses those concerns.”

– Mark Pellicane, President and CEO of CannabCo

The “PURECANN” strain was originally developed for the medical patient and CannabCo notes the technology also reduces the harshness of smoking cannabis for consumers without losing any of its properties. It also claims the product offers less of a the residual heavy “day after effect” associated with smoking pot.

The private company plans to target connoisseurs and rollout the cannabis strain as a unique segment in both the medical and recreational markets.

But consumers wanting to test the company’s claims will have to be patient, as CannabCo said it is waiting on Health Canada for a production licence.  It added it will have exclusive access to the odourless technology to help fill what it believes is a gap in the market.

Odourless cannabis boasts potential

As appealing as the product may be for consumers, the bigger opportunity for CannabCo could be to offer it on a third party basis to other producers.

“We have not ruled out processing for other LP’s and nothing is currently off the table,” Pellicane noted in the release.

But if the technology works as advertised, it could give CannabCo a significant advantage in the market that it might not want to give rival companies access to.

One licensed producer already working on reducing marijuana odour is Aurora Cannabis Inc (NYSE:ACB)(TSX:ACB). The major cannabis producer has received complaints about its facility, Aurora Sky, which is located near the Edmonton International Airport.

But Aurora was focusing on eradicating the smell from its facilities, not necessarily trying to develop odourless consumable products.

Company raising capital

In its news release, CannabCo indicated it was raising funds to build a pilot facility. While the company has not stated an intention to go public, investors may want to keep an eye out on CannabCo.

If there’s one thing investors have learned about cannabis companies, is their insatiable appetite for funding — lots of it. And going public has been a common way to raise cash in the industry.

But for now the public will have to wait and see how popular the products, once produced, prove to be.

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