Why Nanoemulsion Is the Hottest New Trend for Billion Dollar CBD Industry

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Jan 24, 2020, 08:45 ET

PALM BEACH, Florida, Jan. 24, 2020 /PRNewswire/ -- Recent industry reports show that the recreational cannabis beverage industry is on the rise, and nanoemulsion-infused beverages are leading to the development of drinkable cannabis products that are both potent and fast acting. Transparency Market Research (TMR) is predicting an increased growth in the global nanoemulsion market. Valued at US$6.78 Billion in 2016, it's estimated to rise to $14.91 billion by the end of 2025. Nanoemulsion-based cannabis beverages are fast acting and have high bioavailability, meaning the body will absorb a higher amount of the TCH or CBD. This is because nanoemulsions, which have been used for many years in other industries such as pharmaceutics and cosmetics, can be absorbed into the body and brought into the brain more quickly without requiring any external oils or fats. Active cannabis companies in the markets this week include: Pressure BioSciences, Inc. (OTCQB: PBIO), Aphria Inc. (NYSE: APHA) (TSX: APHA), HEXO Corp. (NYSE: HEXO) (TSX: HEXO), Canopy Growth Corporation (NYSE: CGC) (TSX: WEED), Tilray, Inc. (NASDAQ: TLRY).

Edibles made with other types of oils and distillates have an inconvenient and inconsistent bioavailability profile. They are water insoluble and require an external oil or fat in order to be absorbed into the body, which reduces their potency and makes them take significantly longer to take effect.

Drinking beverages using cannabis nanoemulsions is convenient and predictable – you experience a consistent effect on two different days. Similar to alcohol, you feel the effect quickly, starting at around 10 minutes in and maxing out at about 30 minutes, generally lasting a couple of hours, at which point it drops out quickly. These attributes make nanoemulsions useful for pharmaceutical purposes, as it's easier for medical practitioners to know how much to prescribe. Also, users feel the benefits immediately, potentially averting cases of over-usage.

Nanoemulsion are able to dissolve large amount of hydrophobics coupled with ability of protecting drugs from processes such as hydrolysis and enzymatic degradation make them ideal carrier. The several advantages of nanoemulsion over conventional emulsion including micro-droplet size of nanoemulsion with higher efficiency as a better carrier. The aforementioned factors are driving growth of the global nanoemulsion market.

Pressure BioSciences, Inc. (OTCQB: PBIO) BREAKING NEWS: Pressure BioScience Announces Significant New Order and Near Sellout on Revolutionary Nanoemulsification System for Water-Soluble CBD Oil - Pressure BioSciences, a leader in the development and sale of broadly enabling, pressure-based instruments, consumables, and platform technology solutions to the worldwide life sciences and other industries, today announced that the Company has received a purchase order from a new customer for six (6) proprietary Ultra Shear Technology™ ("UST™")-based nanoemulsification systems for processing CBD Oil into stable, effectively water-soluble, highly absorbable nanoemulsions of oil in water. Such nanoemulsions are expected to exhibit levels of bioavailability that far exceed the bioavailability of today's macro or microemulsions of CBD Oil.

CBD is extracted from the hemp plant in an oil. As with any oil-based product, it is difficult for the water-based biology of the human body to access and absorb CBD molecules from relatively large hemp oil drops. This poor and variable absorption of CBD results in low and variable bioavailability of the CBD molecule in the body. Low or widely varying levels of absorption and bioavailability of CBD adversely impacts the effective delivery of the potential benefits of many CBD products on the market today.

The purchase order for six BaroShear K45 systems was placed by Mr. Jason Ellis, President of Vegas CBD Factory. When asked about his order, Mr. Ellis commented: "As consumers rush to try, use and adopt CBD-infused products, it is important to realize that the CBD in the product should be in a high-quality, water-soluble and reliably dosed form. Proper dosing levels with high bioavailability of CBD from ingested products will in turn increase the chance for the consumer to achieve and optimize the potential beneficial effects of the CBD."

Mr. Ellis continued: "Understanding and addressing this issue is a pivotal challenge for the CBD industry. At Vegas CBD Factory, we have spent a significant amount of time searching for the best method available to make high-quality nanoemulsions of CBD oil. We have concluded that PBI's proprietary UST-based platform is the best technology available for achieving optimized dosing and have concluded that to give our customers the best CBD-based product, we should be processing our material using the BaroShear K45 nanoemulsification platform. Consequently, we have placed an initial order for six K45 systems."

Kenneth F. Micciche, Director of PBI's UST Program, said: "Recent BaroShear K45 instrument development efforts and demonstrations have propelled a refreshed sales effort for this innovative instrument system since the beginning of 2020. In the first three weeks of this new marketing initiative, we have secured an order for six BaroShear K45 systems and have genuine interest in additional purchases for many more units. We are excited and inspired to see our aggressive new marketing efforts for the BaroShear K45 taking such a strong early hold, and we anticipate further significant orders in the days and weeks ahead."

Richard T. Schumacher, President and CEO of PBI, commented: "In addition to the new order for six BaroShear K45 systems, there are numerous additional groups who have shown high levels of interest in acquiring the new BaroShear K45 nanoemulsification system. Our team is diligently following up with these interested parties; we believe that several of these groups will be placing purchase orders with us in the very near future. These are very exciting times for all PBI stakeholders." Read this and more news for Pressure BioSciences at: https://www.financialnewsmedia.com/news-pbio/

Other recent developments in the cannabis/cbd/hemp industries:

Aphria Inc. (NYSE: APHA) (TSX: APHA) recently announced that it has received its European Union Good Manufacturing Practices ("EU GMP") certification as an active substance manufacturer in accordance with Art.111 of Directive 2001/83 EC from the Malta Madicines Authority ("MMA") at the Company's Aphria One facility in Leamington, Ontario.

This marks Aphria's second EU GMP certified facility, following the previously announced certification at the Company's subsidiary, ARA - Avanti Rx Analytics ("Avanti"). "We are pleased to receive EU GMP certification for our Aphria One facility which strengthens our international export capabilities," said Irwin D. Simon, Chief Executive Officer. "Looking ahead, we are excited by the momentum and expect to see acceleration in terms of both sales and profitability in the second half of fiscal 2020. We continue to believe the opportunities for long-term shareholder value creation are very strong in Canada and internationally."

HEXO Corp. (NYSE: HEXO) (TSX: HEXO) recently announced it has closed its previously announced registered direct offering with institutional investors (the "Offering"). Under the Offering, the Company sold 11,976,048 common shares at an offering price of US$1.67 per share for gross proceeds of US$20.0 million before deducting fees and other estimated offering expenses. The Company also issued to the investors common share purchase warrants to purchase 5,988,024 common shares of the Company. The warrants will have a five year-term and an exercise price of US$2.45 per share. A.G.P./Alliance Global Partners acted as sole placement agent for the Offering.

Canopy Growth Corporation (NYSE: CGC) (TSX: WEED) this month submitted its final documentation for its beverage facility to Health Canada in late June 2019 and subsequently received the licence in late November 2019. In the seven weeks since receiving the licence, the Company has made meaningful progress towards scaling the production process for its cannabis beverages from lab scale to commercial scale.

Management remains very confident in the underlying beverage science and in its ability to scale production and deliver high quality, differentiated cannabis beverages to the market. However, the scaling process is not complete and the Company is extending its to-market date while the internal teams complete the final steps.

Tilray, Inc. (NASDAQ: TLRY), a global pioneer in cannabis production, research, cultivation, and distribution, recently announced the expansion of its global senior leadership team with two strategic hires: Jon Levin as Chief Operating Officer, who was formerly with Revlon, and Michael Kruteck as Chief Financial Officer, who was formerly with Molson Coors and Pharmaca. Mr. Kruteck's appointment will be effective immediately after filing the Annual Report on Form 10-K for the year ended December 31, 2019. Mark Castaneda, Tilray's current CFO, will take on the role of Strategic Business Development and continue to advise the company and assist in Kruteck's transition.

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