- The Government of Canada expects to fully legalize marijuana nationwide by July 2018
- The Canadian cannabis oil extraction marketplace is projected to grow from C$1 million in 2015 to C$1.7 billion in 2020
- Algae Dynamics Corp. is uniquely positioned to enter the Canadian cannabis oil market with its experience in algae oil extraction
- Algae Dynamics will capitalize on the under-served Canadian cannabis oil marketplace
Algae Dynamics Corp. (OTCQB: ADYNF) is uniquely positioned to take advantage of the full legalization of cannabis in Canada by leveraging its expertise and experience with algae oil extraction to expand into the Canadian cannabis oil marketplace. While Algae Dynamics is publicly traded in the U.S., its business is conducted in Canada with no exposure to U.S. federal regulation involving cannabis.
The original core of the company’s product development was extraction of Omega-3 fatty acids from algae with high concentrations of DHA for nutraceutical products. The company plans to leverage its oil extraction expertise in the cannabis oil extraction marketplace.
Due to the many demonstrated health benefits of both algae and cannabis oils, Algae Dynamics is now targeting a strategy to develop products combining the health benefits of both oils. Part of Algae Dynamics’ strategy is to research the possibility that combining certain algae and cannabis oils may have an enhanced effect for users.
An under-served market for licensed producers in Canada offers great opportunity for Algae Dynamics. Currently there are only 50 licensed producers in all of Canada, which has a population of 35 million – roughly the size of California. In contrast, in Colorado, there are now 624 licensed cultivators. Recreational use of cannabis in Colorado has been legal for adults since 2012.
The Canadian cannabis oil extraction marketplace is projected to grow from C$1 million in 2015 to C$1.7 billion in 2020 – more than a 1,000-fold increase. Capitalizing on the growing demand for cannabis oil and other smoke-free alternatives to cannabis consumption will help support ongoing Algae Dynamics initiatives to create and market research-driven product formulations. Research shows that, in Colorado, 45% of the users of dried cannabis will eventually convert to the use of extracts including oils. Similar trends are expected in Canada, thus expanding the market for cannabis oil.
Collaborations with the University of Waterloo and the University of Western Ontario will use university-level research for creating cannabis oil product lines, which could provide treatment for several types of cancer, as well as depression, post-traumatic stress disorder, anxiety, and schizophrenia. Algae Dynamics will retain rights to any patents developed in collaboration with university research.
Algae Dynamics is led by a strong management team. Co-founder and CEO Richard Rusiniak brings more than 30 years of management, design and process experience. Rusiniak is the co-founder and former president, CFO and CTO of Cymat Corp. (TSX: CYM), which had a market valuation of more than $150 million when he left in 2002. Co-founder and President Paul Ramsay has more than 25 years of business development and management experience. Ramsay co-founded Cymat Corp. with Rusiniak and served as CEO and vice president of business development.
Ross Eastley serves as CFO, and Algae Dynamics’ board of directors includes P. Blair Mullin, managing partner of Apollo Ventures, Aldercreek Capital LLC, and Apollo Marketing LLC, which provide investment capital to emerging companies. Cameron McDonald, CEO of Coldwater Fisheries Inc., a leading Canadian aquaculture company, also serves on the board.
For more information about the company’s research efforts and development process, go to www.AlgaeDynamics.com
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