Tilray gets more capacity
On January 7, High Park, Tilray’s (TLRY) wholly owned subsidiary, received a processing license to make cannabis into finished products in London, Ontario. The license will also enable the company to research and innovate new form factors for the consumption of cannabis.
Currently, the form factors available for consumers are limited. They include dried cannabis, soft gels, and oils. The form factors were primarily limited because medical patients were the primary users until recreational cannabis became legal last October. The need to innovate for recreational users has increased for cannabis companies (MJ) including Canopy Growth (WEED), Supreme Cannabis (SPRWF), and Cronos Group (CRON).
In the press release, High Park said it will work to develop innovative new products such as edibles like beverages and confectionaries, concentrates, and topicals with the receipt of the license. Tilray’s CEO, Brendan Kennedy, said, “This license marks another step forward as High Park increases its capacity to supply differentiated form factors of branded cannabis products for adult-use consumers in Canada.”
This trend is not new to the industry. In its recent management discussion and analysis, Canopy Growth said it’s actively pursuing a value-added market cannabis product for the recreational market, which will include edibles, beverages, and higher concentrated vaping oils. To learn more, read New Formats Canopy Growth Plans to Introduce.