Willow Biosciences (TSX: WLLW) announced major news this morning in that it has advanced its commercialization plan for biosynthesized CBG by a full six months ahead of schedule, with its first commercial-scale production run scheduled to occur in the first quarter of 2021. The production run will see the company produce multiple kilograms of the rare cannabinoid, with sales expected to commence in the second quarter of 2021.
Commercialization of Willow’s biosynthesized cannabinoid has moved ahead of schedule following the company selecting a contract manufacturing organization that is said to be highly regarded. The arrangement will see the Europe-based firm produced ultra-pure CBG for the company in large-scale fermenters, with the first batch to be completed in the first quarter of the new year.
In the interim, Willow has revealed that it currently intends to run a second pilot batch of 500 litres of its product, to provide as samples to customers. Samples are currently said to be experiencing high demand, resulting in the need for a second pilot-batch of product to be produced.
Production is occurring in Europe as a result of strong demand from this region of the globe. The market currently demands high quality ingredients for its manufacturing processes, which Willow is able to provide via its ultra-pure product.
While multiple kilograms are expected to be produced in the first commercial production run of CBG, the company has indicated that it is capable of scaling production as customer demands require.
“Advancing to commercial-scale production is the final step in our transition to becoming a revenue generating company. We are seeing strong interest in our CBG samples and are working closely to understand the needs of potential customers. Once our commercial scale multi-kilogram run is complete, Willow will be uniquely positioning us to take advantage of what many industry experts are projecting to be a multi-billion dollar market.”
Trevor Peters, President & CEO of Willow Bioscience
CBG, or cannabigerol, the first cannabinoid of focus for Willow’s biosynthesis program, is viewed as being the “mother of all cannabinoids.” The cannabinoid is non-psychoactive, while research has suggested that it has a number of bioactive properties including anti-microbial and anti-oxidant functions. CBG naturally occurs in small concentrations, which then convert into other cannabinoids such as THC and CBD, making it challenging to manufacture economically via traditional methods while making it an ideal candidate for biosynthesis.
Willow Biosciences last traded at $0.64 on the TSX.
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