A small-batch cultivator in Nova Scotia is merging with the United Kingdom’s award-winning CBD products producer Cannaray to create a diversified medical cannabis company.
Atlantic Canada’s Aqualitas announced Tuesday that a definitive agreement for the merger had been signed. The combined company will be headquartered in London and its name will be revealed in the coming days. Cannaray and Aqualitas collectively generated C$68.8 million in sales last year.
Aqualitas uses an unorthodox method of cultivation involving what’s called aquaponic fertilization. The method, in this case, utilizes the nutrient-dense waste from thousands of koi carp fish.
“As a result, our cultivars are able to grow to their full genetic potential, producing higher yields, superior bud density, robust terpene profiles and market-leading potencies,” Aqualitas claims. Its aquaponics and living soil system requires less water and energy than traditional indoor cultivation, the grower says.
The Nova Scotia cultivator holds European Union Good Manufacturing Practices (EU GMP) certification as well cGMP and Clean Green organic producer status. The company’s CEO was recently recognized for her leadership in the industry.
Our CEO, @myrna_gillis, is among @growupcanada’s Top 50 Cannabis Leaders in Canada!🌟
This is a testament to her relentless efforts in advocating for the industry, ensuring our voices are heard, and tirelessly working towards creating better cannabis regulations for all.🙌 pic.twitter.com/OMxxigobnU
— Aqualitas (@AqualitasInc) January 23, 2024
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Combined company aims to capitalize on German market
The country recently agreed to decriminalize recreational cannabis, but has not established a distribution framework for it yet. Nonetheless, Aqualitas and Cannaray aim to capitalize on Germany’s medical and future adult-use market in the coming years.
Cannaray has a well-established German medical cannabis subsidiary: Therismos GmbH.
“Therismos has a powerful partnership with Walgreens Boots Alliance’s (Nasdaq: WBA) German subsidiary Alliance Healthcare/GEHE, which has 4,000 cooperation partner pharmacies in the ‘Alphega’ and ‘gesund leben’ network,” Aqualitas said in a news release.
Cannaray is a privately held company, but it has invited prospective investors to inquire via email.
“We are positioned to play a leading role in Germany where the German market is expected to grow exponentially as a result of the impending declassification of cannabis from a narcotic to a non-narcotic,” Cannaray CEO Scott Maguire said.
‘Night-time’ CBD oil, one of many products. Photo credit: Cannaray
Nova Scotia sold over C$111 million worth of cannabis products during the fiscal year ending Mar. 31, 2023. More notably, the percentage of sales that came from producers within the province rose by about 42 per cent to C$33.5 million during that period.
The province also approved 11 new dispensaries during the fiscal year, which included Nova Scotia’s first-ever First Nations pot shop run by the Eskasoni Indigenous group.
rowan@mugglehead.com
