Chilmark Acquisition: What It Means for The Future of Cannabinoid Products

On June 15, Open Book Extracts announced that it had signed a deal to purchase Chilmark Labs. The agreement is expected to send waves across the cannabinoid industry, helping bring new and interesting hemp-derived products to the market. With their talents combined, the two companies are poised to research, develop, produce, and distribute products that utilize the potential of less known cannabinoids like CBN, CBC, THCV, and CBDV.

The current state of affairs

Since the push for legalization and the 2018 United States Farm Bill, there has been a surge in cannabis products being sold around the world. However, most consumers have been focusing on CBD and THC, the two most popular active agents found in cannabis. And while those two do have medical properties, there is much more the plant can offer.

In fact, scientists have been able to isolate and identify over 100 cannabinoids in the plant. And each of them has the potential of being useful as a supplement or a medical treatment. However, the process of extracting and studying rare cannabinoids is often more complicated — and expensive — than the CBD extraction process.

Luckily for consumers, Chilmark Labs specializes in manufacturing rare cannabinoids from hemp and citrus. According to the press release that announced the acquisition: “by making these previously unattainable rare cannabinoids more accessible, Chilmark Labs is unlocking new therapeutic possibilities and developing formulations to maximize the nutraceutical and pharmacological properties of rare cannabinoids.”

“There is a treasure trove of therapeutic potential in the minor cannabinoids, and it’s an honor to make these available for scientific research so that as an industry, we can bring to market plant-based products that address a host of currently unmet conditions,” said Dr. Andrew Salzman, founder, and chairman of Chilmark Labs. “I expect the collaboration between Chilmark Labs and Open Book Extracts to support meaningful scientific advancements in this arena.”

What Open Book Extracts brings to the table

The recent deal sees Open Book Extracts acquiring not only Chilmark Labs, but also its Israel affiliate, Beetlebung Pharma. Both companies are market leaders in manufacturing high-purity rare and minor cannabinoids.

Meanwhile, Open Book Extracts is a grower, processor, and manufacturer of premium plant-based products. Their headquarters is in North Carolina, and they are cGMP certified. 

Current Good Manufacturing Practice(cGMP) regulations are enforced by the FDA. This certification means that Open Book’s manufacturing practices have been vetoed by the FDA, making their products easier to distribute across the United States at a federal level. They operate as B2B wholesale producers of herbal products, often shipping CBD tinctures and other products to sellers with custom labels on them. Meaning you can buy CBD from 5 different states, with 5 different company logos on them, and they may all have been grown and manufactured by Open Book Extracts.

Open Book’s experience in the market and vertical integration across the production process gives them ample reason to acquire a company like Chilmark. Combined, they can create a new market by producing and distributing novel products based on rare cannabinoids. Until those new products hit the market, however, customers should keep enjoying CBD oil and isolates, like the ones found at Cibdol.com

(Disclaimer: The opinions expressed are the personal views of the author. The facts and opinions appearing in the article do not reflect the views of Devdiscourse and Devdiscourse does not claim any responsibility for the same.)