An Australian company that specializes in research and development of cannabis based medical products has launched an agreement with Israeli cannabis-based pharmaceutical company known as Nextage, to purchase synthetic cannabinoid (CBN) from Israel.The Australian company Cannatrek will trial Nextage's synthetic CBN, and providing it meets demand, the two will enter a more permanent agreement in the future.
CBN is a cannabinoid formed by the breakdown of the active ingredient THC in the cannabis plant. As CBN is not found naturally in the cannabis plant, but rather formed as a result of the breakdown of THC, it is difficult to extract it in commercial quantities, leading to only a small number of countries in the world with the ability to produce enough of it for pharmaceutical research and development.
Nextage Cannabis Innovation Ltd. has the ability to produce synthetic CBN, and estimates the average market price of synthetic CBN to be €16,000 per kilogram.
Cannatrek has agreed to purchase CBN from Nextage, in order to test its incorporation into Cannatrek products, through a pilot conducted by the company. Depending on the success of the pilot, the parties will negotiate a final agreement for the commercial production needs of a synthetic CBN and continued supply.
The completion of the initial development process constitutes a significant milestone, as it expected to enable Nextage to reach the production and sale of commercial quantities of CBN.
Moreover, the initial development process constitutes a significant milestone in the NextStage strategy in the field of production and sale of raw materials for the cannabis market.