AgraFlora Organics International Inc (CSE:AGRA) (OTCMKTS:AGFAF) revealed that it has now produced around 1,000 kg of CBD oil with its biomass partner MicroC45, which it is preparing to sell this quarter.
The company said it is currently in talks with potential buyers to determine the optimal sales mix of CBD Isolate, CBD Distillate and CBD Crude Oil and expects to close its first bulk transactions this quarter.
READ: AgraFlora Organics International unveils partnership with MicroC45 Inc for growing hemp at Ontario farm
In June this year, AgraFlora struck a cultivation partnership with MicroC45 for growing hemp in Ontario, Canada. MicroC45 has a proprietary separation process that results in higher extraction value and ultimately a greater yield of major and minor cannabinoids.
The group said the CBD oil was produced from approximately 10,000 kilograms of hemp biomass that was run through the firm's proprietary pre-extraction processes.
AgraFlora added that it has retained an inventory of 10,000 kilograms of additional hemp biomass ready for extraction and processing.
"It is our view that the CBD product market is still in the early days in Canada," Brandon Boddy, AgraFlora's executive chairman and CEO said in a statement.
"We are well-positioned to solve the short term supply issues of CBD ingredients such as CBD Isolate and CBD Distillate, which will help unlock growth in Canada’s CBD product market.
"We’re also thrilled to see the efficiency that our partners have been able to harvest, process, extract and purify our hemp biomass. This points to our ability to maintain competitive pricing over time," he added.
The company is currently working to further refine the CBD oil into CBD isolate, with manufacturing expected to start this month.
If the CBD oil is converted fully into CBD isolate, AgraFlora forecasts it would have an inventory of over 850kg of isolate.
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