Rua Bioscience (NZX:RUA) plans to expand with growing cannabis industry

Highlights

  • Rua Bioscience announces its future development plans
  • Joins hands with Nimbus for distribution in German. Plans to expand its footprint.
  • Approaching a sustainable future, Rua Bioscience is planning for a bigger involvement in the growing cannabis industry.

Rua Bioscience Ltd,( NZX:RUA),  the Company that harnesses the medicinal qualities of cannabis to create medicines, was established in the year 2016 and is listed since October 2020. On Friday, the Company came out with its newsletter which gives the activity updates and future action plans.

Image Source: © 2021 Kalkine Media

As announced recently, the Company is joining hands with the University of Waikato for a two-year research project to investigate the appropriate use of hyperspectral technology in the assessment and cultivation of medical cannabis. The company aims to do this in order to pave its way for the agritech sector. It would mean that when a cannabis flower is scanned, the chemical makeup of the plant would be evident, along with the presence of any possible disease or pests. This will also help in managing the harvest time and the crops in general in a  better way.

Also read: Are these 10 best healthcare companies on the NZX?

With the growing global demand, the cannabis testing industry is expected to be worth NZ$2.5 billion by  2025. The current methods for product testing have proved to be a major disadvantage to commercial cannabis farmers as it is expensive, time consuming, requires destroying the product, which in turn, delays the entire process. The aim of this research is to cut short the time and help the Company claim its part in the ever-expanding cannabis industry.

The German Connection

In terms of associating with the German market, Rob Mitchell, the CEO of Rua Bioscience, explained that there was a contract signed with Nimbus Health, the German distributor. This has been done in order to help generate quick revenue for Rua through the approach of wholesale exports of the dried flower, which is to be used in creating pharmaceuticals. A leading medical cannabis product supplier in Germany, and in the month of March, the preliminary trial export to the country was completed.

Don’t miss: Which are the 10 hot NZX-listed penny stocks under 50 cents?

Rua Bioscience is focusing not only on earning profit but also on creating sustainable product in order to leave a minimal carbon footprint on the planet in the long run.

Also read: 5 popular NZX-listed pharmaceutical stocks to explore

Bottom Line

In its approach towards the upcoming months, Rua Bioscience Ltd has planned strategically on how it shall become a part of the ever-expanding cannabis industry. With its sustainable stance and plans to expand in European markets, it is to be seen how things go from here on.

On 27 August 2021, the Company traded at NZ$0.415, up by 1.22%, at the time of writing.

Comment


Disclaimer

   
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK