Lifespot looks to North American cannabis market for its next buzz
Lifespot Health is trying to move into recreational cannabis markets in the US and Canada with promises to pay for other companies’ growing operations.
Lifespot’s (ASX:LSH) marijuana activities so far have consisted of developing a vaporiser that allows cannabis oils to be inhaled — for fun or for medical reasons.
It said on Wednesday that it’s talking to “North American and Australasian” cannabis companies about financing vertically integrated supply chains for both medical and recreational drugs.
Vertical integration, where a company controls cultivation, drug production and distribution, is a favoured route to market for several of Australia’s biggest cannabis companies including Cann Group (ASX:CAN) and AusCann (ASX:AC8).
“The company is currently assessing strategic opportunities in the cannabis sector, that go beyond the production of cannabis and selling of the bud, by taking a step further in processing it to become end products CBD, THC etc, which have much higher margins,” Lifespot said.
Marijuana sales in the US are estimated to grow by up to 27 per cent a year until 2022 and were worth $6.6 billion in 2017.
Lifespot says its fingerprint-activated vaporiser should be ready for trials in five weeks.
The company’s shares were up 4.5 per cent on Wednesday at 11.5c.