I have an article up about FSD Pharma (C.HUGE) getting its medical sales licence up at Seeking Alpha.
Something investors may overlook is the implications of the HUGE business strategy on its capacity to supply the edibles market.
“The fact it is taking Health Canada so long to come up with regulations for edibles, as well as the proposed taxation regime based on the amount of THC contained, strongly suggests that they are taking a dose-based approach. Which means that to produce edibles a company is going to have to have access to what is effectively pharmaceutical grade cannabis and very precise extraction technology.
By focusing on producing high grade, pharma quality, cannabis HUGE has positioned itself to service the 50% of the recreational market which prefers to eat rather than smoke its cannabis. And by working with dosage companies like Cannatab and extraction companies like World-Class, FSD Pharma has built the skill set to service recreational edibles while also creating opportunities on the pharmaceutical side.”