Canada’s largest medical marijuana company nearly quadrupled its investment in research and development from 2014 to 2015, according to its most recentfinancial statement. During the second quarter for fiscal year 2016, Canopy Growth Corp. spent nearly $250,000 on research and development, compared to just over $58,000 in that same time the previous year.
Canopy spokesperson Jordan Sinclair said most of that money was spent on increasing output and improving techniques to extract oil from the cannabis—both of which will be beneficial to the company when pot isn’t only sold with a prescription, something Sinclair said the company is always preparing for.
A portion of Canopy’s Management’s Data and Analysis annotated in DocumentCloud: (click inside the annotation to see the entire document and other annotations)
There’s also the recent $900,000 acquisition ofBedrocan—a Netherlands-based company Sinclair said has a more “medical-oriented” feel, compared to the parent company’s other branch,Tweed, which is more “approachable” and would “thrive in a recreational system.”
Consumer behavioural researcher Dr. Michael Mulvey said these distinctions are going to become more apparent as companies look to target recreational users.
“Just like if you go to your LCBO, your Beer Store, you’ll find different varieties,” Mulvey said. “Well, you’re going to find a similar parallel when it comes to marijuana use.”
In October, following the federal election and Liberal win, Canopy’s shares surged, reaching their highest point since the company became publicly traded in April 2014. During the campaign, Trudeau promised to legalize marijuana in his term, as long as it doesn’t get in the hands of minors.
Canopy, one of 27 licenced suppliers in Canada, has also invested heavily in building up its infrastructure, spending over $3 million on additions and renovations—two-thirds of which was tied up in an expansion at the company’s Smith Falls’ location. According to an August news release, these additions included an extraction room, which will facilitate the large-scale production of marijuana by-products.
A portion of the news release issued by Canopy in August: (click inside the annotation to see the entire document and other annotations)
In summer 2015, Health Canada rewrote its rules, allowing for the production of marijuana extractions, such as oil and butter. Since then, it has provided 16 medical marijuana suppliers, including Canopy, with the proper licence to begin the process. Canopy is waiting for a final inspection from Health Canada, and hopes to begin selling oils, edibles, and other smoking-substitutes to its clients as early as February.
“We’ve already been producing it,” Sinclair said. “We have an inventory in our vault. We’re basically ready to go.” Sinclair expects extracted products to be popular in a recreational market, citing Colorado, which legalized marijuana in 2012 and generates a large amount of income from extracted product.
However, JP Caron, a habitual marijuana user, said he doesn’t plan on changing the way he sources the product upon legalization, and that’s something medical marijuana companies looking to break into the recreational market need to consider. “The government is going to tax a whole lot and there’s still going to be a market for people who grow their own and sell for more affordable price,” Caron said.
Mulvey said medical marijuana companies also need to address international competition, which it doesn’t consider in its analysis of the most recent financial statement.
A portion of Canopy’s Management’s Data and Analysis annotated in DocumentCloud: (click inside the annotation to see the entire document and other annotations)
Sinclair said he isn’t worried, adding the company currently controls between 20 and 25 per cent of the market share in Canada, and is first focused on the sale of extracted products, and second, on the legalization and sale of recreational marijuana.
“There’s a pretty solid pattern that we’ve shown we’ve been able to increase sales quarter over quarter,” he said. “We’re excited for the next numbers to come out.”
Those numbers are scheduled to be released at the end of February.
Debra Bear-Brideau is a mother-of-two who lives on the Tobique First Nation, a community in northwestern New Brunswick. Along with other buildings in the First Nation, her home was tested for radon a year ago. The results showed that Debra’s home had the highest level of indoor radon exposure out of the entire community. Radon is a naturally occurring gas that’s odorless and colorless. It’s generally harmless outside but indoor radon exposure can be extremely unhealthy and may lead to lung cancer. After losing a family pet to the disease, Debra fears for her children’s health and her own.
Tobique First Nation is a Maliseet community located on the north side of the Tobique River in New Brunswick.
It has approximately 2,000 members, with close to 1,500 living on-reserve.
As part of Health Canada’s National Radon Program testing, six public or federal buildings on the First Nation community werre tested for indoor radon gas a year ago.
Five of these buildings – including the community’s daycare, healing lodge and wellness centre – had high elevated levels of radon.
Given the anxiety by residents felt over Health Canada’s test results, a survey of homes was also initiated (home testing is not part of the National Strategy).
According to the Tobique First Nation Residential Radon Report, a high percentage of the homes hadhigh radon levels. (Original report posted below)
Debra Bear-Brideau’s home had the highest level of indoor radon gas. Although her home got the work needed to fix the radon levels, she continues to worry about her family’s safety.
“We live in such an area with so much radon, that there’s always the possibility of it building back up again during winter,” says Bear-Brideau.
“It’s kinda scary this invisible gas can come in your house and hurt your kids and family.”
Radon gas is an invisible, colourless and tasteless gas formed by the breakdown of uranium in rocks and soil.
“Within the province, areas that have certain types of rock (shale and granite) and soil can have higher levels of uranium in the ground, leading to more radon,” says Dr. Mariane Paquet, medical officer ofhealth for northern New Brunswick.
Radon gas is measured in becquerels per cubic metre (Bqm3). Higher numbers of becquerels mean higher levels of radon gas in the air.
“Since it is a gas, it can move freely through the soil enabling it to escape into the atmosphere or seep into buildings,” says Dr. Paquet.
Health Canada says remedial measures should be taken in a home or building when the radon concentration exceeds 200 Bq/m3.
Bear-Brideau’s home – like so many others in New Brunswick – had among the highest indoor radon concentrations in the country.
A cross-Canada projectby the National Radon Program surveyed 14,000 homes over a two-year period (2009-2011).
18.7 per cent of New Brunswick homestested had between 200-600 Bq/m3 of radon, 6.1 per cent had levels above 600 Bq/m3.
Nova Scotia had the second highest percentages of indoor radon, followed by Newfoundland and Labrador and PEI.
By health regions, Tobique First Nation located within the Fredericton area (Health Region 3) had a whopping 16.5 per cent of houses with radon levels above 600Bq/m3.
Despite work being done to raise awareness about radon and radon testing, it seems there still a long way to go.
“I don’t think a lot of First Nations communities do radon testing,”says Sterling Perly, executive director of programs for the Tobique First Nation.
“I know Health Canada and CMHC at different times have provided some information. The thing is information can only go so far especially for cash stricken communities already trying to address other issues,” says Osmond.
Through an environmental survey, Statistics Canada asked Canadians by province how many were aware of radon and radon testing. In New Brunswick, most knew radon was a health hazard and could describe the radioactive gas.
But ninety-five per cent had not tested for radon.
Bear-Brideau says she knew what radon was, but never knew it was in her house.
“My mother Pauline Bear asked a specialist about radon in the early 1980’s, but was told there wasn’t any radon around this area,” she says.
Her basement was sealed during radon remediation to help reduce the radon gas in her basement. Bear-Brideau said every room in her house has wall-to-wall cracks on her floors.
“When I was in university I also inquired about radon in this area and was told the same thing. I had an inkling there was more to my fatigue and feeling unwell.”
She explains how she often she has sinus problems and how her daughter has had pneumonia several times – leaving her to wonder if it is related to the radon.
Recently, Health Canada reported that more than 3000 lung cancer deaths may be linked to indoor radon exposure.
That doesn’t sit well Bear-Brideau.
“She had lung cancer. It hit her really quick,” says Bear-Brideau of their family ferret.
“All of a sudden she was coughing funny. I took her to the vet and the vet said she died of lung cancer. I’m concerned eventually I’ll go to the hospital one of these days and they’ll say you have lung cancer.”
Kelley Bush, head of radon education and awareness for Health Canada, says the federal government is doing everything it can to raise awareness about radon and radon testing.
This photo shows the pipe that runs out from the back of Bear-Brideau’s house after work was done to reduce her radon level. She didn’t eat her rhubarb this year growing directly underneath the pipe that blows excessive radon.
“In the Atlantic region, we’re have partners with the Lung Association. They sell test kits for thirty-five dollars that includes the analysis too,” says Bush.
Roshini Kassie, manager at theNew Brunswick Lung Association has even gone as far as mailing test kits across the country.
“It doesn’t prevent someone calling from PEI to call the New Brunswick Association to order a test kit or they can go on our Facebook page and order them,” says Kassie.
Although close to 200 radon tests are waiting to be collected for analysis at the Tobique First Nation, the community is taking the lead on raising awareness about radon and radon testing.
Health Canada is currently testing federal workplaces until the end of March 2013. A report is expected to be released at this time.
But in the meantime, Bear-Brideau says she will continue to leave her windows open as a precaution – even in winter.
