Business

LiveWell Canada acquires Natural Health Products

Canada’s cannabis industry is more dynamic than ever as firms and producers are trying to keep up with the market by way of mergers and acquisitions. Following in the footsteps of other companies is Gatineau-based LiveWell Canada, which recently announced its de-listing from the Toronto Stock Exchange (TSX) and its listing to the Canadian Stock Exchange (CSE) last week.

Canada’s cannabis industry is more dynamic than ever as firms and producers are trying to keep up with the market. They are making mergers and acquisitions.

Gatineau-based LiveWell Canada is following in the footsteps of other companies. The company recently announced its delisting from the Toronto Stock Exchange (TSX). In the same time, the company announced its listing to the Canadian Stock Exchange (CSE) last week.

The LiveWell deal

The company recently announced that it has reached an agreement with Canada-based Vitality CBD Natural Health Products and its U.S. subsidiary. The deal entitles LiveWell to ownership of the company in hopes of creating the largest hemp cultivation and cannabidiol (CBD) extraction operations in North America.

Vitality CBD Natural Health Products is currently running its production phase using 20,000 acres of property. Approximately 19,000 acres are allotted to 33 farms across Montana. In addition, the remaining acres are in a single farm at Alberta, Canada.

LiveWell is yet to announce the name of the company made by the acquisition. In addition, the company said that it will be capable of producing 3,000 kilograms of hemp a month by June next year.

Vitality CBD Natural Health Products is currently running its production phase using 20,000 acres of property. (Source)

The new firm will be led by LiveWell CEO David Rendimonti

He says that the new firm will have research expertise upfront. Most importantly, the main focus of its resources will be on developing new products. Furthermore, the firm will put effort into increasing its production capacity to meet the growing demand.

“This transaction is about meeting and satisfying patient and consumer needs. North American markets are the primary focus for wholesale and consumer sales initially. European and South American markets are also on the horizon for the (new company),” he adds.

Canada’s cannabis shortage expected to persist for months

LiveWell’s recent acquisition will make it capable of handling the surging demand for cannabis in Canada.

Since recreational marijuana legalization in October, several retailers struggled with having enough supplies to sell to customers. The problem will persist for months to come.

Canada is facing a national shortage of cannabis supply. (Source)

The severe supply and demand conundrum in Canada is a national shortage

Retailers from Alberta, British Columbia, and other provinces believe that the issue will continue for another six to 18 months. As they continue to lack supplies to sell, the operations of these retailers are limited by a huge margin.

Even government-run suppliers are running out of stocks immediately after they post items for wholesale online. However, private retailers have resorted to keeping a 24/7 watch on the suppliers in hopes of bagging a huge supply for themselves.

Canada’s cannabis industry suffers from the lack of supplies that retailers have to offer. Therefore, companies like LiveWell are quick to take action with regard to the issue.

Other companies in the nation should begin finding U.S. retailers and producers to partner with. In order for them to be more capable of meeting the demand.

(Featured Image by rawpixel)

Andrew Ross

Andrew Ross is a features writer whose stories are centered on emerging economies and fast-growing companies. His articles often look at trade policies and practices, geopolitics, mining and commodities, as well as the exciting world of technology. He also covers industries that have piqued the interest of the stock market, such as cryptocurrency and cannabis. He is a certified gadget enthusiast.

Recent Posts

Berlin Will Launch Pilot Project for Legal Cannabis Sales

Berlin is launching a pilot project in the Friedrichshain-Kreuzberg and Neukölln districts to study the…

1 week ago

Legalizace, Czech Cannabis Magazine, Accused of “Promoting Drug Addiction”, Wins Case

The Czech Constitutional Court overturned a previous ruling accusing Robert Veverka, former editor of Legalizace,…

2 weeks ago

U.N. High Commissioner for Human Rights Declares the War on Drugs a Failure

U.N. High Commissioner for Human Rights Volker Türk has declared the war on drugs a…

2 weeks ago

Pennsylvania Lawmakers Unveil New Plan to Legalize Cannabis

Pennsylvania lawmakers have proposed a plan to legalize recreational cannabis by 2025. Projections estimate up…

2 weeks ago

United States — First Step in DEA Hearing on Cannabis Reclassification

The DEA just held its first procedural hearing on cannabis reclassification, although the focus was…

3 weeks ago

Brazil — Supreme Court Legalizes the Cultivation, Processing, and Sale of Hemp for Medical Purposes

The Superior Court of Justice in Brazil has legalized the cultivation, processing, and sale of…

3 weeks ago