Neptune Wellness Solutions Inc. enters market for cannabis flower in Canada

Quebec-based cannabis company targets lucrative market for dried cannabis.

Dried cannabis accounts for most sales in Canada. Marharyta Fatieieva/Getty Images

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Neptune Wellness Solutions Inc. has announced its entry into the lucrative market for dried cannabis in Canada.

The move becomes possible with a Health Canada amendment to the licence of the Laval, Quebec-based company.

As a result, Neptune will now be able to sell dried cannabis flower and pre-rolled joints.

“Dried flower and associated products derived therefrom will be the latest additions to Neptune’s collection of cannabis products,” president and CEO Michael Cammarata said.

The company issued a media release about the development Tuesday (March 23), which contained Cammarata’s comments.

The release noted that the move empowers the company to “provide a comprehensive portfolio”.

Moreover, the change in its Health Canada licence allows it to “target the lucrative flower segment”.

According to Neptune, the dried cannabis segment represents the “dominant force in the industry both in sales and revenue”.

Market data gathered by the federal government for the month of November 2020 provides an illustration.

Specifically, 9,331,225 packaged units of cannabis sold across Canada for medical and non-medical purposes in that month.

Dried cannabis sales represented 67 percent of total sales, with 6,223,634 packaged units sold.

Edible cannabis sales accounted for 17 percent of total sales, or 1,608,791 packaged units.

Lastly, cannabis extracts sales represented 16 percent of total sales, with 1,486,038 packaged units sold.

Neptune’s diversified business

Before the change in its licence, Neptune focused on cannabis extracts.

The company distributes extracts under two brands: Mood Ring and PanHash.

Neptune does business as a health and wellness company, delivering a variety of cannabis and non-cannabis products.

Before the legalization of cannabis in Canada in 2018, the company worked in the natural product extraction industry.

Additionally, it enjoyed recognition as a pioneer in the krill oil sector.

For example, Neptune announced in February this year favourable results of a study regarding its MaxSimil fish oil.

Moreover, the company collaborates with known conservationist Jane Goodall on a collection of four natural oil products branded as Wonders of Africa.

In its March 23, 2021 release, Neptune stated that it will “leverage trusted partnerships across its supply chain” to acquire dried cannabis.

An “award-winning cannabis sommelier” will select the cultivars.

The company will package the products at its Sherbrooke plant in Quebec.

“This ensures that the integrity and quality of the carefully sourced flower will be maintained and preserved to provide supreme quality for the customer,” Neptune stated.

The company trades under the ticker symbol NEPT at the Toronto Stock Exchange. As of this post, shares are trading $1.90 each.

Follow Carlito Pablo on Twitter at @carlitopablo

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