The medical marijuana sector is fast becoming an interesting segment as more and more governments around the world are legalizing the controlled use of the substance. The change in the regulations has helped companies in the sector boost their operations and generate higher demand.
New Colombia Resources Inc. (OTCPK:NEWC) is a Colombia-based U.S. listed company which is set to excel as the company is able to provide specialized products in the form of native Colombian strains of marijuana to the global market.
The company announced the laboratory results for its Cannabis Sativa Pure Extract, produced through its joint venture Sannabis. The extract used the landrace strain, which is native to Colombia. The results showed that the extract has a high THC value at 35%.
It also has 0.2% B-Caryophyllene terpene value, giving an exceptional appeal to the product. The company claimed that the product has been used successfully in Colombia for treating patients suffering from neurological disorders and cancer.
New Colombia Resources plans to file an application to the FDA for the grant of an orphan drug designation for a neurological disorder. The company said that the product’s HPLC chromatograms show promise.
The company’s joint venture Sannabis is also involved in producing medical marijuana products. The JV has been selling these products in Colombia since 2014. It mainly uses a network of independent pharmacies for this purpose.
New Colombia Resources is also working towards expanding its reach in international markets. It is currently targeting the US market with its upcoming application with the FDA.
Apart from this, the company is also promoting native Colombian strains such as Punto Rojo, Mango Biche and Sativas. This may provide lucrative opportunities for the company as such strains cannot flourish outside the Colombian environment.
The company said that it can fill the gap by providing products made from these strains to North American markets at reasonable rates.
With the growing acceptance of medical marijuana products in the US and Canada, the company is in a strong position to create additional revenue streams for itself.
Company officials were also recently called upon by a division of the U.S. Department of Defense to help a remote indigenous area of Colombia in developing legal medical marijuana and hemp operations.
This collaboration is also likely to help boost the company’s position in the medical marijuana sector.
Pursuant to growing markets for medical and recreational marijuana products, the company’s stock has performed well this year. The stock grew over 147% in 2016 so far but the standout performance occurred in the past three months when shares grew by a whopping 630%.
The stock should continue to stay in investors watchlists as the company continues to carve a niche for itself in the international marijuana market.
