The Canadian Bioceutical Corporation Announces Planned Launch of New Medical Marijuana Venture
OWEN SOUND, ONTARIO / ACCESSWIRE / January 7, 2015
The Toronto-based Canadian Bioceutical Corporation ("BCC") (TSX VENTURE: BCC.V) announces a plan to expand its existing life sciences business into the production, processing and distribution of medical marijuana and cannabis-based medicinal products and that it intends to locate its newest venture in the City of Owen Sound, Ontario.
"For over two decades, BCC (formerly Allegiance Equity Corporation) has been involved in the development of herbal and natural-based medicines and supplements", noted Scott Boyes, BCC's new president. "Cannabis has been used extensively as a medicinal substance for centuries, but modern science and many progressive members of the medical community have only recently precipitated a renewed acceptance of cannabinoid-based products as a viable replacement, or complementary, treatment for a wide variety of medical conditions. We see it as a natural extension of our corporate tradition in the life sciences sector that BCC should expand into what may well turn out to be the most exciting application of botanically-based medicinal therapy in this century."
"We understand the time and cost to procure the required Health Canada license and we are committed to focusing available resources as we foresee this business model as a potential means to significantly build shareholder value", concluded Mr. Boyes.
BioCannabis Products Ltd.
BCC intends to launch this venture through a newly incorporated, wholly-owned subsidiary, BioCannabis Products Ltd. (BioCannabis). BioCannabis has recently submitted an application to Health Canada to become a Licensed Producer under the Marijuana for Medical Purposes Regulations (which came into force on April 1, 2014).
BioCannabis has engaged Mark Krytiuk as its Vice President of Operations. Mr. Krytiuk is a highly experienced producer of medical cannabis and has been involved with several licensed facilities under the antecedent legislation. He is bringing to BioCannabis an entire team of experienced growers and selected members of their support staff to oversee what is expected to become one of the largest medical cannabis production facilities in the country.
Mr. Krytiuk stated that, "We are fortunate to be living in a country where our enlightened courts have recognized the rights of patients to have access to the medicinal properties of medical-grade cannabis and where a responsible government understands and intends that access to a controlled substance like medical marijuana needs to regulated and that high-quality production, testing and labelling standards must be assured. Working with our management, advisors, consultants, stakeholders and Health Canada, we expect to build-out one of the largest and most efficient facilities in the country, incorporating internationally recognized GMP production standards."
The Owen Sound Facility
BioCannabis has entered into a Letter of Intent to Lease a 155,000 square foot premises in an industrial park in the eastern part of the City of Owen Sound and, upon becoming fully operational, is expected to be one of the largest medical marijuana facilities in North America. Beginning immediately, the company will be working closely with the owner of the facility and city staff to adapt the building to support the cultivation, processing, packaging and distribution of medical cannabis and cannabinoid-based products.
"The original language of the Marijuana for Medical Purposes Regulations restricted production to dried cannabis only and this definition dramatically limited the ability of the industry to provide patients with access to other, more convenient, more acceptable and, potentially more effective, formats of cannabis medicines", says Michael Arnkvarn, the Chief Marketing Officer of BCC (BioCannabis' parent company). "A BC Court of Appeal ruled in August of 2014 that limiting patients from access to other types of cannabis medicines was unconstitutional and has given Health Canada until next summer to amend the language of the regulations."
Mr. Arnkvarn adds, "We intend to draw on our extensive experience in the sourcing and production of nutraceutical and bioceutical extracts and expand our offering to patients to include cannabis extracts in the form of capsules, oils, tinctures and creams etc. and we are planning to include appropriate laboratory, encapsulation and packaging capabilities within our Owen Sound facility. When the regulations are amended later this year (as anticipated), we hope to be ready to supply patients with multiple formats of high quality cannabis medicines.”
Owen Sound as BioCannabis' "Home Town"
As a part of our mandate to build shareholder value, we have been considering the prospect of entering into the emerging medical marijuana sector", says Scott Boyes, "as we believed that unlike many of the entities exploring the opportunity, BCC has a life sciences tradition and history of developing and marketing plant-based health products. While expertise in commercial marijuana cultivation, managerial depth, marketing experience and strategy, funding and overall organizational strength are critical success factors for any new participant in this new industry, just as important is the selection of a facility and a community in which to establish the new venture."
"In Owen Sound, we found the ideal building for our proposed operation with scalability and features extremely suitable to our intended use", states Boyes. "The region offers a capable labour force with a strong small-town work ethic, while business costs and taxes are favourable compared to many other jurisdictions in the province. But, just as important, we also found a highly supportive municipal government and community anxious to encourage the growth of new business and employment. At full production, BioCannabis projects creating up to 100 new jobs in the community. Our company has been in lengthy discussions with Steve Furness, the city's Manager of Economic Development to ensure that we would receive the support and cooperation of the municipality and such support has been extremely forthcoming".
Owen Sound's new mayor, Ian Boddy has written, "One of the City's key strategic initiatives is attracting people and businesses to locate in Owen Sound. We are excited about the potential new employment and assessment that this new manufacturing facility (medical cannabis) will provide."
CSA Investor Caution
Investors should be aware that companies cannot legally conduct a medical marijuana business without a license from Health Canada and that there is significant time and cost required to obtain such a license. As a publicly-traded company publicizing its intention to enter the medical marijuana industry, BCC urges potential investors in any company in this sector, to become familiar with the required resources and the related risks, costs implications and time required before a company will be able to begin licensed operations. There is no assurance that any company announcing its intent to enter the medical marijuana industry will be successful in obtaining a license or in creating shareholder value.
About The Canadian Bioceutical Corporation
BCC, formerly Allegiance Equity Corporation, is an Ontario corporation that, for over two decades has been developing unique standardized mass-market nutraceutical products for the treatment of common ailments where present pharmaceutical treatments and Over-the-Counter (OTC) products fail to meet the needs of patients. BCC has targeted markets having clearly identified product deficiencies and dissatisfied consumers afflicted with a variety of medical conditions. BCC obtains regulatory approval and patents for these unique compounds and formulations and may produce and distribute or license its products for royalty revenues.
BCC's principal brands are CinG-X(TM) and Reliéva(TM) and the company, through its subsidiary BioCannabis Products Ltd., will shortly be launching a series of cannabis-based branded products to address this rapidly-evolving market.